Correlation Between Doubleline Total and Payden High
Can any of the company-specific risk be diversified away by investing in both Doubleline Total and Payden High 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 Total and Payden High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Total Return and Payden High Income, you can compare the effects of market volatilities on Doubleline Total and Payden High 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 Total with a short position of Payden High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Total and Payden High.
Diversification Opportunities for Doubleline Total and Payden High
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Doubleline and Payden is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Total Return and Payden High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden High Income and Doubleline Total 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 Total Return are associated (or correlated) with Payden High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden High Income has no effect on the direction of Doubleline Total i.e., Doubleline Total and Payden High go up and down completely randomly.
Pair Corralation between Doubleline Total and Payden High
Assuming the 90 days horizon Doubleline Total is expected to generate 6.52 times less return on investment than Payden High. In addition to that, Doubleline Total is 1.33 times more volatile than Payden High Income. It trades about 0.02 of its total potential returns per unit of risk. Payden High Income is currently generating about 0.21 per unit of volatility. If you would invest 632.00 in Payden High Income on October 21, 2024 and sell it today you would earn a total of 5.00 from holding Payden High Income or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Total Return vs. Payden High Income
Performance |
| Timeline |
| Doubleline Total Return |
| Payden High Income |
Doubleline Total and Payden High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Total and Payden High
The main advantage of trading using opposite Doubleline Total and Payden High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Total position performs unexpectedly, Payden High 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 Payden High will offset losses from the drop in Payden High's long position.| Doubleline Total vs. Osterweis Strategic Income | Doubleline Total vs. Metropolitan West Total | Doubleline Total vs. Doubleline Low Duration | Doubleline Total vs. Akre Focus Fund |
| Payden High vs. Ab Bond Inflation | Payden High vs. Blrc Sgy Mnp | Payden High vs. Doubleline Total Return | Payden High vs. Siit High Yield |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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