Correlation Between Doubleline Emerging and Dreyfus/standish

Can any of the company-specific risk be diversified away by investing in both Doubleline Emerging and Dreyfus/standish 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 Dreyfus/standish 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 Dreyfusstandish Global Fixed, you can compare the effects of market volatilities on Doubleline Emerging and Dreyfus/standish 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 Dreyfus/standish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Emerging and Dreyfus/standish.

Diversification Opportunities for Doubleline Emerging and Dreyfus/standish

0.35

Correlation Coefficient

Doubleline Emerging  Dreyfus/standish

Weak diversification

The 3 months correlation between Doubleline and Dreyfus/standish is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Emerging Markets and Dreyfusstandish Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusstandish Global 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 Dreyfus/standish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfusstandish Global has no effect on the direction of Doubleline Emerging i.e., Doubleline Emerging and Dreyfus/standish go up and down completely randomly.

Pair Corralation between Doubleline Emerging and Dreyfus/standish

Assuming the 90 days horizon Doubleline Emerging Markets is expected to under-perform the Dreyfus/standish. But the mutual fund apears to be less risky and, when comparing its historical volatility, Doubleline Emerging Markets is 1.06 times less risky than Dreyfus/standish. The mutual fund trades about -0.23 of its potential returns per unit of risk. The Dreyfusstandish Global Fixed is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  2,067  in Dreyfusstandish Global Fixed on October 6, 2024 and sell it today you would lose (59.00) from holding Dreyfusstandish Global Fixed or give up 2.85% of portfolio value over 90 days.

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

Doubleline Emerging Markets  vs.  Dreyfusstandish Global Fixed

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.

Dreyfusstandish Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dreyfusstandish Global Fixed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Dreyfus/standish is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Doubleline Emerging and Dreyfus/standish

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

The idea behind Doubleline Emerging Markets and Dreyfusstandish Global Fixed 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.