Correlation Between Washington Mutual and Doubleline Multi
Can any of the company-specific risk be diversified away by investing in both Washington Mutual and Doubleline Multi 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 Washington Mutual and Doubleline Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Mutual Investors and Doubleline Multi Asset Growth, you can compare the effects of market volatilities on Washington Mutual and Doubleline Multi 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 Washington Mutual with a short position of Doubleline Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and Doubleline Multi.
Diversification Opportunities for Washington Mutual and Doubleline Multi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Washington and Doubleline is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors and Doubleline Multi Asset Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Multi Asset and Washington Mutual 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 Washington Mutual Investors are associated (or correlated) with Doubleline Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Multi Asset has no effect on the direction of Washington Mutual i.e., Washington Mutual and Doubleline Multi go up and down completely randomly.
Pair Corralation between Washington Mutual and Doubleline Multi
Assuming the 90 days horizon Washington Mutual Investors is expected to generate 1.83 times more return on investment than Doubleline Multi. However, Washington Mutual is 1.83 times more volatile than Doubleline Multi Asset Growth. It trades about 0.04 of its potential returns per unit of risk. Doubleline Multi Asset Growth is currently generating about 0.06 per unit of risk. If you would invest 5,139 in Washington Mutual Investors on October 7, 2024 and sell it today you would earn a total of 1,021 from holding Washington Mutual Investors or generate 19.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 26.41% |
| Values | Daily Returns |
Washington Mutual Investors vs. Doubleline Multi Asset Growth
Performance |
| Timeline |
| Washington Mutual |
| Doubleline Multi Asset |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Washington Mutual and Doubleline Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and Doubleline Multi
The main advantage of trading using opposite Washington Mutual and Doubleline Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual position performs unexpectedly, Doubleline Multi 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 Multi will offset losses from the drop in Doubleline Multi's long position.| Washington Mutual vs. Growth Fund Of | Washington Mutual vs. Europacific Growth Fund | Washington Mutual vs. Smallcap World Fund | Washington Mutual vs. Investment Of America |
| Doubleline Multi vs. T Rowe Price | Doubleline Multi vs. Touchstone Large Cap | Doubleline Multi vs. Barings Global Floating | Doubleline Multi vs. Qs Global Equity |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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