Correlation Between NYSE Composite and Doubleline Floating
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Doubleline Floating 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 NYSE Composite and Doubleline Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Doubleline Floating Rate, you can compare the effects of market volatilities on NYSE Composite and Doubleline Floating 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 NYSE Composite with a short position of Doubleline Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Doubleline Floating.
Diversification Opportunities for NYSE Composite and Doubleline Floating
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and DOUBLELINE is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Doubleline Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Floating Rate and NYSE Composite 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 NYSE Composite are associated (or correlated) with Doubleline Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Floating Rate has no effect on the direction of NYSE Composite i.e., NYSE Composite and Doubleline Floating go up and down completely randomly.
Pair Corralation between NYSE Composite and Doubleline Floating
Assuming the 90 days trading horizon NYSE Composite is expected to generate 4.42 times more return on investment than Doubleline Floating. However, NYSE Composite is 4.42 times more volatile than Doubleline Floating Rate. It trades about 0.42 of its potential returns per unit of risk. Doubleline Floating Rate is currently generating about 0.11 per unit of risk. If you would invest 1,923,895 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 103,309 from holding NYSE Composite or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
NYSE Composite vs. Doubleline Floating Rate
Performance |
| Timeline |
NYSE Composite and Doubleline Floating Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Doubleline Floating Rate
Pair trading matchups for Doubleline Floating
Pair Trading with NYSE Composite and Doubleline Floating
The main advantage of trading using opposite NYSE Composite and Doubleline Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Doubleline Floating 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 Floating will offset losses from the drop in Doubleline Floating's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Doubleline Floating vs. Doubleline E Fixed | Doubleline Floating vs. Doubleline Emerging Markets | Doubleline Floating vs. Doubleline Low Duration | Doubleline Floating vs. Doubleline Flexible Income |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |