Correlation Between Flaherty Crumrine and Doubleline Income
Can any of the company-specific risk be diversified away by investing in both Flaherty Crumrine and Doubleline Income 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 Flaherty Crumrine and Doubleline Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flaherty Crumrine Preferred and Doubleline Income Solutions, you can compare the effects of market volatilities on Flaherty Crumrine and Doubleline Income 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 Flaherty Crumrine with a short position of Doubleline Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flaherty Crumrine and Doubleline Income.
Diversification Opportunities for Flaherty Crumrine and Doubleline Income
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flaherty and Doubleline is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Flaherty Crumrine Preferred and Doubleline Income Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Income and Flaherty Crumrine 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 Flaherty Crumrine Preferred are associated (or correlated) with Doubleline Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Income has no effect on the direction of Flaherty Crumrine i.e., Flaherty Crumrine and Doubleline Income go up and down completely randomly.
Pair Corralation between Flaherty Crumrine and Doubleline Income
Considering the 90-day investment horizon Flaherty Crumrine Preferred is expected to under-perform the Doubleline Income. But the fund apears to be less risky and, when comparing its historical volatility, Flaherty Crumrine Preferred is 1.11 times less risky than Doubleline Income. The fund trades about -0.12 of its potential returns per unit of risk. The Doubleline Income Solutions is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,235 in Doubleline Income Solutions on August 28, 2024 and sell it today you would earn a total of 28.00 from holding Doubleline Income Solutions or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flaherty Crumrine Preferred vs. Doubleline Income Solutions
Performance |
| Timeline |
| Flaherty Crumrine |
| Doubleline Income |
Flaherty Crumrine and Doubleline Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flaherty Crumrine and Doubleline Income
The main advantage of trading using opposite Flaherty Crumrine and Doubleline Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flaherty Crumrine position performs unexpectedly, Doubleline Income 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 Income will offset losses from the drop in Doubleline Income's long position.| Flaherty Crumrine vs. Flaherty Crumrine Total | Flaherty Crumrine vs. Flaherty Crumrine Preferred | Flaherty Crumrine vs. John Hancock Preferred | Flaherty Crumrine vs. Flaherty and Crumrine |
| Doubleline Income vs. Highland Floating Rate | Doubleline Income vs. Pimco Dynamic Income | Doubleline Income vs. Doubleline Opportunistic Credit | Doubleline Income vs. Neuberger Berman Next |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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