Correlation Between Multi Manager and Doubleline Global
Can any of the company-specific risk be diversified away by investing in both Multi Manager and Doubleline Global 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 Multi Manager and Doubleline Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Manager High Yield and Doubleline Global Bond, you can compare the effects of market volatilities on Multi Manager and Doubleline Global 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 Multi Manager with a short position of Doubleline Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Manager and Doubleline Global.
Diversification Opportunities for Multi Manager and Doubleline Global
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multi and Doubleline is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager High Yield and Doubleline Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Global Bond and Multi Manager 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 Multi Manager High Yield are associated (or correlated) with Doubleline Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Global Bond has no effect on the direction of Multi Manager i.e., Multi Manager and Doubleline Global go up and down completely randomly.
Pair Corralation between Multi Manager and Doubleline Global
Assuming the 90 days horizon Multi Manager High Yield is expected to generate 0.32 times more return on investment than Doubleline Global. However, Multi Manager High Yield is 3.14 times less risky than Doubleline Global. It trades about 0.09 of its potential returns per unit of risk. Doubleline Global Bond is currently generating about -0.18 per unit of risk. If you would invest 848.00 in Multi Manager High Yield on August 27, 2024 and sell it today you would earn a total of 2.00 from holding Multi Manager High Yield or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Manager High Yield vs. Doubleline Global Bond
Performance |
| Timeline |
| Multi Manager High |
| Doubleline Global Bond |
Multi Manager and Doubleline Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Manager and Doubleline Global
The main advantage of trading using opposite Multi Manager and Doubleline Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Manager position performs unexpectedly, Doubleline Global 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 Global will offset losses from the drop in Doubleline Global's long position.| Multi Manager vs. Baird Smallmid Cap | Multi Manager vs. M3sixty Capital Small | Multi Manager vs. Kinetics Small Cap | Multi Manager vs. Ab Small Cap |
| Doubleline Global vs. Barings Emerging Markets | Doubleline Global vs. Extended Market Index | Doubleline Global vs. Origin Emerging Markets | Doubleline Global vs. Artisan Emerging Markets |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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