Correlation Between Doubleline Flexible and Cohen Steers

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

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

Diversification Opportunities for Doubleline Flexible and Cohen Steers

0.66

Correlation Coefficient

Doubleline Flexible  Cohen Steers

Poor diversification

The 3 months correlation between Doubleline and Cohen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Flexible Income and Cohen Steers Preferd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Preferd and Doubleline Flexible 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 Flexible Income are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Preferd has no effect on the direction of Doubleline Flexible i.e., Doubleline Flexible and Cohen Steers go up and down completely randomly.

Pair Corralation between Doubleline Flexible and Cohen Steers

Assuming the 90 days horizon Doubleline Flexible Income is expected to generate 0.43 times more return on investment than Cohen Steers. However, Doubleline Flexible Income is 2.33 times less risky than Cohen Steers. It trades about 0.34 of its potential returns per unit of risk. Cohen Steers Preferd is currently generating about 0.11 per unit of risk. If you would invest  862.00  in Doubleline Flexible Income on December 29, 2024 and sell it today you would earn a total of  13.00  from holding Doubleline Flexible Income or generate 1.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Doubleline Flexible Income  vs.  Cohen Steers Preferd

Doubleline Flexible

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Flexible Income are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Doubleline Flexible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cohen Steers Preferd

Risk-Adjusted Performance

OK

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

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

The idea behind Doubleline Flexible Income and Cohen Steers Preferd 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.