Correlation Between Western Asset and Doubleline Opportunistic
Can any of the company-specific risk be diversified away by investing in both Western Asset and Doubleline Opportunistic 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 Western Asset and Doubleline Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Diversified and Doubleline Opportunistic Credit, you can compare the effects of market volatilities on Western Asset and Doubleline Opportunistic 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 Western Asset with a short position of Doubleline Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Doubleline Opportunistic.
Diversification Opportunities for Western Asset and Doubleline Opportunistic
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Doubleline is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Doubleline Opportunistic Credi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Opportunistic and Western Asset 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 Western Asset Diversified are associated (or correlated) with Doubleline Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Opportunistic has no effect on the direction of Western Asset i.e., Western Asset and Doubleline Opportunistic go up and down completely randomly.
Pair Corralation between Western Asset and Doubleline Opportunistic
Considering the 90-day investment horizon Western Asset Diversified is expected to under-perform the Doubleline Opportunistic. In addition to that, Western Asset is 1.58 times more volatile than Doubleline Opportunistic Credit. It trades about -0.1 of its total potential returns per unit of risk. Doubleline Opportunistic Credit is currently generating about 0.17 per unit of volatility. If you would invest 1,518 in Doubleline Opportunistic Credit on August 28, 2024 and sell it today you would earn a total of 26.00 from holding Doubleline Opportunistic Credit or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Diversified vs. Doubleline Opportunistic Credi
Performance |
| Timeline |
| Western Asset Diversified |
| Doubleline Opportunistic |
Western Asset and Doubleline Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Doubleline Opportunistic
The main advantage of trading using opposite Western Asset and Doubleline Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Doubleline Opportunistic 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 Opportunistic will offset losses from the drop in Doubleline Opportunistic's long position.| Western Asset vs. Doubleline Yield Opportunities | Western Asset vs. PIMCO Access Income | Western Asset vs. Blackrock Innovation Growth | Western Asset vs. Cohen Steers Tax Advantaged |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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