Correlation Between Icon Bond and Doubleline Income
Can any of the company-specific risk be diversified away by investing in both Icon Bond 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 Icon Bond and Doubleline Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Bond Fund and Doubleline Income, you can compare the effects of market volatilities on Icon Bond 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 Icon Bond with a short position of Doubleline Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Bond and Doubleline Income.
Diversification Opportunities for Icon Bond and Doubleline Income
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ICON and Doubleline is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Icon Bond Fund and Doubleline Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Income and Icon Bond 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 Icon Bond Fund 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 Icon Bond i.e., Icon Bond and Doubleline Income go up and down completely randomly.
Pair Corralation between Icon Bond and Doubleline Income
Assuming the 90 days horizon Icon Bond is expected to generate 1.06 times less return on investment than Doubleline Income. But when comparing it to its historical volatility, Icon Bond Fund is 1.15 times less risky than Doubleline Income. It trades about 0.18 of its potential returns per unit of risk. Doubleline Income is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 669.00 in Doubleline Income on August 29, 2024 and sell it today you would earn a total of 126.00 from holding Doubleline Income or generate 18.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Bond Fund vs. Doubleline Income
Performance |
| Timeline |
| Icon Bond Fund |
| Doubleline Income |
Icon Bond and Doubleline Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Bond and Doubleline Income
The main advantage of trading using opposite Icon Bond and Doubleline Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Bond 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.| Icon Bond vs. Pimco Income Fund | Icon Bond vs. HUMANA INC | Icon Bond vs. Aquagold International | Icon Bond vs. Barloworld Ltd ADR |
| Doubleline Income vs. Ab Global Bond | Doubleline Income vs. Artisan High Income | Doubleline Income vs. Icon Bond Fund | Doubleline Income vs. Calamos Dynamic Convertible |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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