Correlation Between FAM and Doubleline Yield
Can any of the company-specific risk be diversified away by investing in both FAM and Doubleline Yield 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 FAM and Doubleline Yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAM and Doubleline Yield Opportunities, you can compare the effects of market volatilities on FAM and Doubleline Yield 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 FAM with a short position of Doubleline Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAM and Doubleline Yield.
Diversification Opportunities for FAM and Doubleline Yield
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FAM and Doubleline is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding FAM and Doubleline Yield Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Yield Opp and FAM 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 FAM are associated (or correlated) with Doubleline Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Yield Opp has no effect on the direction of FAM i.e., FAM and Doubleline Yield go up and down completely randomly.
Pair Corralation between FAM and Doubleline Yield
Considering the 90-day investment horizon FAM is expected to generate 1.02 times more return on investment than Doubleline Yield. However, FAM is 1.02 times more volatile than Doubleline Yield Opportunities. It trades about 0.09 of its potential returns per unit of risk. Doubleline Yield Opportunities is currently generating about 0.08 per unit of risk. 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 | Very Weak |
| Accuracy | 82.19% |
| Values | Daily Returns |
FAM vs. Doubleline Yield Opportunities
Performance |
| Timeline |
| FAM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Doubleline Yield Opp |
FAM and Doubleline Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAM and Doubleline Yield
The main advantage of trading using opposite FAM and Doubleline Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAM position performs unexpectedly, Doubleline Yield 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 Yield will offset losses from the drop in Doubleline Yield's long position.| FAM vs. Blackstone Gso Long | FAM vs. Blackstone Gso Senior | FAM vs. Nuveen Floating Rate | FAM vs. Pioneer Floating Rate |
| Doubleline Yield vs. Highland Floating Rate | Doubleline Yield vs. Doubleline Opportunistic Credit | Doubleline Yield vs. Alliancebernstein Global High | Doubleline Yield vs. Western Asset Emerging |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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