Correlation Between Payden Floating and Doubleline Global
Can any of the company-specific risk be diversified away by investing in both Payden Floating 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 Payden Floating and Doubleline Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payden Floating Rate and Doubleline Global Bond, you can compare the effects of market volatilities on Payden Floating 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 Payden Floating with a short position of Doubleline Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden Floating and Doubleline Global.
Diversification Opportunities for Payden Floating and Doubleline Global
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Payden and Doubleline is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Payden Floating Rate 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 Payden 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 Payden Floating Rate 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 Payden Floating i.e., Payden Floating and Doubleline Global go up and down completely randomly.
Pair Corralation between Payden Floating and Doubleline Global
Assuming the 90 days horizon Payden Floating Rate is expected to generate 0.35 times more return on investment than Doubleline Global. However, Payden Floating Rate is 2.89 times less risky than Doubleline Global. It trades about 0.13 of its potential returns per unit of risk. Doubleline Global Bond is currently generating about -0.01 per unit of risk. If you would invest 975.00 in Payden Floating Rate on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Payden Floating Rate or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Payden Floating Rate vs. Doubleline Global Bond
Performance |
| Timeline |
| Payden Floating Rate |
| Doubleline Global Bond |
Payden Floating and Doubleline Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payden Floating and Doubleline Global
The main advantage of trading using opposite Payden Floating and Doubleline Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden Floating 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.| Payden Floating vs. Payden Porate Bond | Payden Floating vs. Payden Absolute Return | Payden Floating vs. Payden Absolute Return | Payden Floating vs. Payden Emerging Markets |
| Doubleline Global vs. Calvert Global Energy | Doubleline Global vs. Salient Mlp Energy | Doubleline Global vs. Jennison Natural Resources | Doubleline Global vs. Tortoise Energy Independence |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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