Correlation Between Doubleline Yield and Western Asset
Can any of the company-specific risk be diversified away by investing in both Doubleline Yield and Western Asset 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 Yield and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Yield Opportunities and Western Asset Global, you can compare the effects of market volatilities on Doubleline Yield and Western Asset 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 Yield with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Yield and Western Asset.
Diversification Opportunities for Doubleline Yield and Western Asset
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Doubleline and Western is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Yield Opportunities and Western Asset Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Global and Doubleline Yield 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 Yield Opportunities are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Global has no effect on the direction of Doubleline Yield i.e., Doubleline Yield and Western Asset go up and down completely randomly.
Pair Corralation between Doubleline Yield and Western Asset
Considering the 90-day investment horizon Doubleline Yield Opportunities is expected to generate 0.84 times more return on investment than Western Asset. However, Doubleline Yield Opportunities is 1.19 times less risky than Western Asset. It trades about 0.29 of its potential returns per unit of risk. Western Asset Global is currently generating about 0.11 per unit of risk. If you would invest 1,588 in Doubleline Yield Opportunities on September 3, 2024 and sell it today you would earn a total of 55.00 from holding Doubleline Yield Opportunities or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Yield Opportunities vs. Western Asset Global
Performance |
| Timeline |
| Doubleline Yield Opp |
| Western Asset Global |
Doubleline Yield and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Yield and Western Asset
The main advantage of trading using opposite Doubleline Yield and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Yield position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Doubleline Yield vs. Highland Floating Rate | Doubleline Yield vs. Doubleline Opportunistic Credit | Doubleline Yield vs. Alliancebernstein Global High | Doubleline Yield vs. Western Asset Emerging |
| Western Asset vs. Tekla Healthcare Investors | Western Asset vs. Tekla Life Sciences | Western Asset vs. Cohen Steers Reit | Western Asset vs. XAI Octagon Floating |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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