Correlation Between Highland Floating and Doubleline Yield
Can any of the company-specific risk be diversified away by investing in both Highland Floating 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 Highland Floating and Doubleline Yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highland Floating Rate and Doubleline Yield Opportunities, you can compare the effects of market volatilities on Highland Floating 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 Highland Floating with a short position of Doubleline Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Floating and Doubleline Yield.
Diversification Opportunities for Highland Floating and Doubleline Yield
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Highland and DoubleLine is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Highland Floating Rate 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 Highland Floating 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 Highland Floating Rate 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 Highland Floating i.e., Highland Floating and Doubleline Yield go up and down completely randomly.
Pair Corralation between Highland Floating and Doubleline Yield
Given the investment horizon of 90 days Highland Floating Rate is expected to generate 2.89 times more return on investment than Doubleline Yield. However, Highland Floating is 2.89 times more volatile than Doubleline Yield Opportunities. It trades about 0.1 of its potential returns per unit of risk. Doubleline Yield Opportunities is currently generating about 0.29 per unit of risk. If you would invest 563.00 in Highland Floating Rate on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Highland Floating Rate or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highland Floating Rate vs. Doubleline Yield Opportunities
Performance |
| Timeline |
| Highland Floating Rate |
| Doubleline Yield Opp |
Highland Floating and Doubleline Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Floating and Doubleline Yield
The main advantage of trading using opposite Highland Floating and Doubleline Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Floating 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.| Highland Floating vs. Neuberger Berman Next | Highland Floating vs. SRH Total Return | Highland Floating vs. Nuveen Municipal Credit | Highland Floating vs. Doubleline Income Solutions |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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