Correlation Between Doubleline Income and Doubleline Shiller

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

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

Diversification Opportunities for Doubleline Income and Doubleline Shiller

0.44

Correlation Coefficient

Doubleline Income  Doubleline Shiller

Very weak diversification

The 3 months correlation between Doubleline and Doubleline is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Income and Doubleline Shiller Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Shiller and Doubleline Income 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 Income are associated (or correlated) with Doubleline Shiller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Shiller has no effect on the direction of Doubleline Income i.e., Doubleline Income and Doubleline Shiller go up and down completely randomly.

Pair Corralation between Doubleline Income and Doubleline Shiller

Assuming the 90 days horizon Doubleline Income is expected to generate 2.15 times less return on investment than Doubleline Shiller. But when comparing it to its historical volatility, Doubleline Income is 9.63 times less risky than Doubleline Shiller. It trades about 0.48 of its potential returns per unit of risk. Doubleline Shiller Enhanced is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,139  in Doubleline Shiller Enhanced on November 28, 2024 and sell it today you would earn a total of  58.00  from holding Doubleline Shiller Enhanced or generate 5.09% return on investment over 90 days.

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

Doubleline Income  vs.  Doubleline Shiller Enhanced

Doubleline Income

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Income are ranked lower than 37 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Doubleline Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Doubleline Shiller

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Shiller Enhanced are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Doubleline Shiller 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 Income and Doubleline Shiller

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

The idea behind Doubleline Income and Doubleline Shiller Enhanced 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.

Check out your portfolio center.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.