Correlation Between Doubleline Yield and PIMCO Access

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

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

Diversification Opportunities for Doubleline Yield and PIMCO Access

0.83

Correlation Coefficient

Doubleline Yield  PIMCO Access

Very poor diversification

The 3 months correlation between Doubleline and PIMCO is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Yield Opportunities and PIMCO Access Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Access Income and Doubleline Yield 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 Yield Opportunities are associated (or correlated) with PIMCO Access. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Access Income has no effect on the direction of Doubleline Yield i.e., Doubleline Yield and PIMCO Access go up and down completely randomly.

Pair Corralation between Doubleline Yield and PIMCO Access

Considering the 90-day investment horizon Doubleline Yield Opportunities is expected to generate 0.69 times more return on investment than PIMCO Access. However, Doubleline Yield Opportunities is 1.44 times less risky than PIMCO Access. It trades about 0.04 of its potential returns per unit of risk. PIMCO Access Income is currently generating about -0.02 per unit of risk. If you would invest  1,611  in Doubleline Yield Opportunities on December 1, 2024 and sell it today you would earn a total of  18.00  from holding Doubleline Yield Opportunities or generate 1.12% return on investment over 90 days.

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

Doubleline Yield Opportunities  vs.  PIMCO Access Income

Doubleline Yield Opp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Yield Opportunities are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Doubleline Yield is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

PIMCO Access Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days PIMCO Access Income has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PIMCO Access is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Doubleline Yield and PIMCO Access

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

The idea behind Doubleline Yield Opportunities and PIMCO Access Income 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.