Correlation Between Doubleline Opportunistic and RiverNorth Flexible

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

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

Diversification Opportunities for Doubleline Opportunistic and RiverNorth Flexible

0.22

Correlation Coefficient

Doubleline Opportunistic  RiverNorth Flexible

Modest diversification

The 3 months correlation between Doubleline and RiverNorth is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Opportunistic Credi and RiverNorth Flexible Municipalo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RiverNorth Flexible and Doubleline Opportunistic 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 Opportunistic Credit are associated (or correlated) with RiverNorth Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RiverNorth Flexible has no effect on the direction of Doubleline Opportunistic i.e., Doubleline Opportunistic and RiverNorth Flexible go up and down completely randomly.

Pair Corralation between Doubleline Opportunistic and RiverNorth Flexible

Considering the 90-day investment horizon Doubleline Opportunistic Credit is expected to generate 0.95 times more return on investment than RiverNorth Flexible. However, Doubleline Opportunistic Credit is 1.05 times less risky than RiverNorth Flexible. It trades about 0.1 of its potential returns per unit of risk. RiverNorth Flexible Municipalome is currently generating about -0.03 per unit of risk. If you would invest  1,430  in Doubleline Opportunistic Credit on September 28, 2024 and sell it today you would earn a total of  108.00  from holding Doubleline Opportunistic Credit or generate 7.55% return on investment over 90 days.

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

Doubleline Opportunistic Credi  vs.  RiverNorth Flexible Municipalo

Doubleline Opportunistic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Doubleline Opportunistic Credit has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Doubleline Opportunistic is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

RiverNorth Flexible

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RiverNorth Flexible Municipalome has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Pair Trading with Doubleline Opportunistic and RiverNorth Flexible

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

The idea behind Doubleline Opportunistic Credit and RiverNorth Flexible Municipalome 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.