Correlation Between Doubleline Opportunistic and Tekla Healthcare

Can any of the company-specific risk be diversified away by investing in both Doubleline Opportunistic and Tekla Healthcare 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 Tekla Healthcare 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 Tekla Healthcare Opportunities, you can compare the effects of market volatilities on Doubleline Opportunistic and Tekla Healthcare 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 Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Opportunistic and Tekla Healthcare.

Diversification Opportunities for Doubleline Opportunistic and Tekla Healthcare

-0.31

Correlation Coefficient

Doubleline Opportunistic  Tekla Healthcare

Very good diversification

The 3 months correlation between Doubleline and Tekla is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Opportunistic Credi and Tekla Healthcare Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Opp 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 Tekla Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Healthcare Opp has no effect on the direction of Doubleline Opportunistic i.e., Doubleline Opportunistic and Tekla Healthcare go up and down completely randomly.

Pair Corralation between Doubleline Opportunistic and Tekla Healthcare

Considering the 90-day investment horizon Doubleline Opportunistic Credit is expected to generate 0.34 times more return on investment than Tekla Healthcare. However, Doubleline Opportunistic Credit is 2.96 times less risky than Tekla Healthcare. It trades about 0.07 of its potential returns per unit of risk. Tekla Healthcare Opportunities is currently generating about -0.4 per unit of risk. If you would invest  1,542  in Doubleline Opportunistic Credit on October 4, 2024 and sell it today you would earn a total of  8.00  from holding Doubleline Opportunistic Credit or generate 0.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Doubleline Opportunistic Credi  vs.  Tekla Healthcare Opportunities

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 current stock price mess, may contribute to short-term losses for the institutional investors.

Tekla Healthcare Opp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tekla Healthcare Opportunities has generated negative risk-adjusted returns adding no value to fund investors. Even with inconsistent performance in the last few months, the Fund's technical indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the fund retail investors.

Pair Trading with Doubleline Opportunistic and Tekla Healthcare

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

The idea behind Doubleline Opportunistic Credit and Tekla Healthcare 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.