Correlation Between CBH and Doubleline Yield

Can any of the company-specific risk be diversified away by investing in both CBH and Doubleline Yield 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 CBH and Doubleline Yield into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CBH and Doubleline Yield Opportunities, you can compare the effects of market volatilities on CBH and Doubleline Yield 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 CBH with a short position of Doubleline Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Doubleline Yield.

Diversification Opportunities for CBH and Doubleline Yield

0.0

Correlation Coefficient

CBH  Doubleline Yield

Pay attention - limited upside

The 3 months correlation between CBH and Doubleline is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Doubleline Yield Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Yield Opp and CBH 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 CBH are associated (or correlated) with Doubleline Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Yield Opp has no effect on the direction of CBH i.e., CBH and Doubleline Yield go up and down completely randomly.

Pair Corralation between CBH and Doubleline Yield

If you would invest  1,557  in Doubleline Yield Opportunities on December 27, 2024 and sell it today you would earn a total of  53.00  from holding Doubleline Yield Opportunities or generate 3.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CBH  vs.  Doubleline Yield Opportunities

CBH

Risk-Adjusted Performance

Very Weak

Over the last 90 days CBH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental drivers, CBH is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Doubleline Yield Opp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Yield Opportunities are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Doubleline Yield is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CBH and Doubleline Yield

The main advantage of trading using opposite CBH and Doubleline Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Doubleline Yield 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 Yield will offset losses from the drop in Doubleline Yield's long position.

The idea behind CBH and Doubleline Yield Opportunities pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..