Correlation Between Doubleline Emerging and Dfa International

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

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

Diversification Opportunities for Doubleline Emerging and Dfa International

0.94

Correlation Coefficient

Doubleline Emerging  Dfa International

Almost no diversification

The 3 months correlation between Doubleline and Dfa is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Emerging Markets and Dfa International Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa International Real and Doubleline Emerging 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 Emerging Markets are associated (or correlated) with Dfa International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa International Real has no effect on the direction of Doubleline Emerging i.e., Doubleline Emerging and Dfa International go up and down completely randomly.

Pair Corralation between Doubleline Emerging and Dfa International

Assuming the 90 days horizon Doubleline Emerging Markets is expected to generate 0.51 times more return on investment than Dfa International. However, Doubleline Emerging Markets is 1.97 times less risky than Dfa International. It trades about -0.15 of its potential returns per unit of risk. Dfa International Real is currently generating about -0.18 per unit of risk. If you would invest  860.00  in Doubleline Emerging Markets on October 23, 2024 and sell it today you would lose (30.00) from holding Doubleline Emerging Markets or give up 3.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Doubleline Emerging Markets  vs.  Dfa International Real

Doubleline Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Doubleline Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Doubleline Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dfa International Real

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dfa International Real has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Doubleline Emerging and Dfa International

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

The idea behind Doubleline Emerging Markets and Dfa International Real 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.