Correlation Between Doubleline Core and Doubleline Multi
Can any of the company-specific risk be diversified away by investing in both Doubleline Core and Doubleline Multi at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Doubleline Core and Doubleline Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline E Fixed and Doubleline Multi Asset Trend, you can compare the effects of market volatilities on Doubleline Core and Doubleline Multi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Doubleline Core with a short position of Doubleline Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Core and Doubleline Multi.
Diversification Opportunities for Doubleline Core and Doubleline Multi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Doubleline and Doubleline is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline E Fixed and Doubleline Multi Asset Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Multi Asset and Doubleline Core is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Doubleline E Fixed are associated (or correlated) with Doubleline Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Multi Asset has no effect on the direction of Doubleline Core i.e., Doubleline Core and Doubleline Multi go up and down completely randomly.
Pair Corralation between Doubleline Core and Doubleline Multi
Assuming the 90 days horizon Doubleline E Fixed is expected to generate 0.48 times more return on investment than Doubleline Multi. However, Doubleline E Fixed is 2.07 times less risky than Doubleline Multi. It trades about -0.23 of its potential returns per unit of risk. Doubleline Multi Asset Trend is currently generating about -0.18 per unit of risk. If you would invest 947.00 in Doubleline E Fixed on August 25, 2024 and sell it today you would lose (27.00) from holding Doubleline E Fixed or give up 2.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline E Fixed vs. Doubleline Multi Asset Trend
Performance |
| Timeline |
| Doubleline E Fixed |
| Doubleline Multi Asset |
Doubleline Core and Doubleline Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Core and Doubleline Multi
The main advantage of trading using opposite Doubleline Core and Doubleline Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Core position performs unexpectedly, Doubleline Multi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Doubleline Multi will offset losses from the drop in Doubleline Multi's long position.| Doubleline Core vs. Doubleline Strategic Modity | Doubleline Core vs. Doubleline Emerging Markets | Doubleline Core vs. Doubleline Emerging Markets | Doubleline Core vs. Doubleline Floating Rate |
| Doubleline Multi vs. Doubleline Strategic Modity | Doubleline Multi vs. Doubleline Emerging Markets | Doubleline Multi vs. Doubleline Emerging Markets | Doubleline Multi vs. Doubleline Floating Rate |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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