Correlation Between Doubleline Income and FAM
Can any of the company-specific risk be diversified away by investing in both Doubleline Income and FAM 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 Income and FAM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Income Solutions and FAM, you can compare the effects of market volatilities on Doubleline Income and FAM 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 Income with a short position of FAM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Income and FAM.
Diversification Opportunities for Doubleline Income and FAM
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Doubleline and FAM is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Income Solutions and FAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAM and Doubleline Income 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 Income Solutions are associated (or correlated) with FAM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAM has no effect on the direction of Doubleline Income i.e., Doubleline Income and FAM go up and down completely randomly.
Pair Corralation between Doubleline Income and FAM
Considering the 90-day investment horizon Doubleline Income is expected to generate 1.36 times less return on investment than FAM. In addition to that, Doubleline Income is 1.06 times more volatile than FAM. It trades about 0.07 of its total potential returns per unit of risk. FAM is currently generating about 0.09 per unit of volatility. If you would invest 500.00 in FAM on November 2, 2024 and sell it today you would earn a total of 174.00 from holding FAM or generate 34.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.19% |
| Values | Daily Returns |
Doubleline Income Solutions vs. FAM
Performance |
| Timeline |
| Doubleline Income |
| FAM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Doubleline Income and FAM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Income and FAM
The main advantage of trading using opposite Doubleline Income and FAM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Income position performs unexpectedly, FAM 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 FAM will offset losses from the drop in FAM's long position.| Doubleline Income vs. Highland Floating Rate | Doubleline Income vs. Pimco Dynamic Income | Doubleline Income vs. Doubleline Opportunistic Credit | Doubleline Income vs. Neuberger Berman Next |
| FAM vs. Blackstone Gso Long | FAM vs. Blackstone Gso Senior | FAM vs. Nuveen Floating Rate | FAM vs. Pioneer 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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