Correlation Between Federated High and Doubleline Core
Can any of the company-specific risk be diversified away by investing in both Federated High and Doubleline Core 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 Federated High and Doubleline Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated High Yield and Doubleline Core Fixed, you can compare the effects of market volatilities on Federated High and Doubleline Core 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 Federated High with a short position of Doubleline Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated High and Doubleline Core.
Diversification Opportunities for Federated High and Doubleline Core
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Federated and Doubleline is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Federated High Yield and Doubleline Core Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Core Fixed and Federated High 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 Federated High Yield are associated (or correlated) with Doubleline Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Core Fixed has no effect on the direction of Federated High i.e., Federated High and Doubleline Core go up and down completely randomly.
Pair Corralation between Federated High and Doubleline Core
Assuming the 90 days horizon Federated High Yield is expected to generate 0.98 times more return on investment than Doubleline Core. However, Federated High Yield is 1.02 times less risky than Doubleline Core. It trades about 0.23 of its potential returns per unit of risk. Doubleline Core Fixed is currently generating about 0.02 per unit of risk. If you would invest 632.00 in Federated High Yield on October 21, 2024 and sell it today you would earn a total of 7.00 from holding Federated High Yield or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated High Yield vs. Doubleline Core Fixed
Performance |
| Timeline |
| Federated High Yield |
| Doubleline Core Fixed |
Federated High and Doubleline Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated High and Doubleline Core
The main advantage of trading using opposite Federated High and Doubleline Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated High position performs unexpectedly, Doubleline Core 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 Core will offset losses from the drop in Doubleline Core's long position.| Federated High vs. Locorr Dynamic Equity | Federated High vs. Smallcap World Fund | Federated High vs. Doubleline Core Fixed | Federated High vs. Old Westbury Fixed |
| Doubleline Core vs. Lord Abbett Short | Doubleline Core vs. Dunham High Yield | Doubleline Core vs. Tiaa Cref High Yield Fund | Doubleline Core vs. Federated High Yield |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |