Correlation Between DoubleLine Shiller and I Trax

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

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

Diversification Opportunities for DoubleLine Shiller and I Trax

0.0

Correlation Coefficient

DoubleLine Shiller  I Trax

Pay attention - limited upside

The 3 months correlation between DoubleLine and DMX_old is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DoubleLine Shiller CAPE and I Trax Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Trax Inc and DoubleLine Shiller 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 Shiller CAPE are associated (or correlated) with I Trax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Trax Inc has no effect on the direction of DoubleLine Shiller i.e., DoubleLine Shiller and I Trax go up and down completely randomly.

Pair Corralation between DoubleLine Shiller and I Trax

If you would invest  2,991  in DoubleLine Shiller CAPE on December 29, 2024 and sell it today you would earn a total of  71.00  from holding DoubleLine Shiller CAPE or generate 2.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

DoubleLine Shiller CAPE  vs.  I Trax Inc

DoubleLine Shiller CAPE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in DoubleLine Shiller CAPE are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, DoubleLine Shiller is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

I Trax Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days I Trax Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, I Trax is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with DoubleLine Shiller and I Trax

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

The idea behind DoubleLine Shiller CAPE and I Trax Inc 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.