Correlation Between Doubleline Yield and American Beacon
Can any of the company-specific risk be diversified away by investing in both Doubleline Yield and American Beacon 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 Doubleline Yield and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Yield Opportunities and American Beacon Sim, you can compare the effects of market volatilities on Doubleline Yield and American Beacon 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 Doubleline Yield with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Yield and American Beacon.
Diversification Opportunities for Doubleline Yield and American Beacon
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Doubleline and American is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Yield Opportunities and American Beacon Sim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Sim and Doubleline Yield 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 Doubleline Yield Opportunities are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Sim has no effect on the direction of Doubleline Yield i.e., Doubleline Yield and American Beacon go up and down completely randomly.
Pair Corralation between Doubleline Yield and American Beacon
Assuming the 90 days horizon Doubleline Yield is expected to generate 2.26 times less return on investment than American Beacon. In addition to that, Doubleline Yield is 1.11 times more volatile than American Beacon Sim. It trades about 0.08 of its total potential returns per unit of risk. American Beacon Sim is currently generating about 0.2 per unit of volatility. If you would invest 795.00 in American Beacon Sim on September 12, 2024 and sell it today you would earn a total of 137.00 from holding American Beacon Sim or generate 17.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Yield Opportunities vs. American Beacon Sim
Performance |
| Timeline |
| Doubleline Yield Opp |
| American Beacon Sim |
Doubleline Yield and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Yield and American Beacon
The main advantage of trading using opposite Doubleline Yield and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Yield position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Doubleline Yield vs. Vanguard Total Stock | Doubleline Yield vs. Vanguard 500 Index | Doubleline Yield vs. Vanguard Total Stock | Doubleline Yield vs. Vanguard Total Stock |
| American Beacon vs. Dreyfusstandish Global Fixed | American Beacon vs. Doubleline Yield Opportunities | American Beacon vs. Artisan High Income | American Beacon vs. Multisector Bond Sma |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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