Correlation Between Edgewood Growth and Doubleline Total
Can any of the company-specific risk be diversified away by investing in both Edgewood Growth and Doubleline Total 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 Edgewood Growth and Doubleline Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edgewood Growth Fund and Doubleline Total Return, you can compare the effects of market volatilities on Edgewood Growth and Doubleline Total 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 Edgewood Growth with a short position of Doubleline Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgewood Growth and Doubleline Total.
Diversification Opportunities for Edgewood Growth and Doubleline Total
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Edgewood and Doubleline is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Edgewood Growth Fund and Doubleline Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Total Return and Edgewood Growth 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 Edgewood Growth Fund are associated (or correlated) with Doubleline Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Total Return has no effect on the direction of Edgewood Growth i.e., Edgewood Growth and Doubleline Total go up and down completely randomly.
Pair Corralation between Edgewood Growth and Doubleline Total
Assuming the 90 days horizon Edgewood Growth Fund is expected to generate 2.76 times more return on investment than Doubleline Total. However, Edgewood Growth is 2.76 times more volatile than Doubleline Total Return. It trades about 0.09 of its potential returns per unit of risk. Doubleline Total Return is currently generating about 0.05 per unit of risk. If you would invest 3,718 in Edgewood Growth Fund on August 26, 2024 and sell it today you would earn a total of 1,250 from holding Edgewood Growth Fund or generate 33.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edgewood Growth Fund vs. Doubleline Total Return
Performance |
| Timeline |
| Edgewood Growth |
| Doubleline Total Return |
Edgewood Growth and Doubleline Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edgewood Growth and Doubleline Total
The main advantage of trading using opposite Edgewood Growth and Doubleline Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edgewood Growth position performs unexpectedly, Doubleline Total 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 Total will offset losses from the drop in Doubleline Total's long position.| Edgewood Growth vs. Edgewood Growth Fund | Edgewood Growth vs. Polen Growth Fund | Edgewood Growth vs. Doubleline Shiller Enhanced | Edgewood Growth vs. Parnassus Endeavor Fund |
| Doubleline Total vs. Doubleline Strategic Modity | Doubleline Total vs. Doubleline Emerging Markets | Doubleline Total vs. Doubleline Emerging Markets | Doubleline Total 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |