Correlation Between Doubleline Shiller and Doubleline Income

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

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

Diversification Opportunities for Doubleline Shiller and Doubleline Income

-0.67

Correlation Coefficient

Doubleline Shiller  Doubleline Income

Excellent diversification

The 3 months correlation between Doubleline and Doubleline is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Shiller Enhanced and Doubleline Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Income 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 Enhanced are associated (or correlated) with Doubleline Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Income has no effect on the direction of Doubleline Shiller i.e., Doubleline Shiller and Doubleline Income go up and down completely randomly.

Pair Corralation between Doubleline Shiller and Doubleline Income

Assuming the 90 days horizon Doubleline Shiller Enhanced is expected to under-perform the Doubleline Income. In addition to that, Doubleline Shiller is 7.64 times more volatile than Doubleline Income. It trades about -0.06 of its total potential returns per unit of risk. Doubleline Income is currently generating about 0.29 per unit of volatility. If you would invest  767.00  in Doubleline Income on September 27, 2024 and sell it today you would earn a total of  31.00  from holding Doubleline Income or generate 4.04% return on investment over 90 days.

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

Doubleline Shiller Enhanced  vs.  Doubleline Income

Doubleline Shiller

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Doubleline Shiller Enhanced has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Doubleline Income

Risk-Adjusted Performance

9 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Income are ranked lower than 9 (%) 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.

Pair Trading with Doubleline Shiller and Doubleline Income

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

The idea behind Doubleline Shiller Enhanced and Doubleline 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.