Correlation Between Payden High and Doubleline
Can any of the company-specific risk be diversified away by investing in both Payden High and Doubleline 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 High and Doubleline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payden High Income and Doubleline E Fixed, you can compare the effects of market volatilities on Payden High and Doubleline 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 High with a short position of Doubleline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden High and Doubleline.
Diversification Opportunities for Payden High and Doubleline
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Payden and Doubleline is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Payden High Income and Doubleline E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline E Fixed and Payden High 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 High Income are associated (or correlated) with Doubleline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline E Fixed has no effect on the direction of Payden High i.e., Payden High and Doubleline go up and down completely randomly.
Pair Corralation between Payden High and Doubleline
Assuming the 90 days horizon Payden High is expected to generate 3.11 times less return on investment than Doubleline. But when comparing it to its historical volatility, Payden High Income is 1.31 times less risky than Doubleline. It trades about 0.09 of its potential returns per unit of risk. Doubleline E Fixed is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 920.00 in Doubleline E Fixed on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Doubleline E Fixed or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Payden High Income vs. Doubleline E Fixed
Performance |
| Timeline |
| Payden High Income |
| Doubleline E Fixed |
Payden High and Doubleline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payden High and Doubleline
The main advantage of trading using opposite Payden High and Doubleline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden High position performs unexpectedly, Doubleline 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 will offset losses from the drop in Doubleline's long position.| Payden High vs. Oil Gas Ultrasector | Payden High vs. Icon Natural Resources | Payden High vs. Alpsalerian Energy Infrastructure | Payden High vs. Thrivent Natural Resources |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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