Correlation Between Doubleline Income and Eaton Vance

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

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

Diversification Opportunities for Doubleline Income and Eaton Vance

-0.43

Correlation Coefficient

Doubleline Income  Eaton Vance

Very good diversification

The 3 months correlation between Doubleline and Eaton is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Income Solutions and Eaton Vance Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Risk 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 Solutions are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Risk has no effect on the direction of Doubleline Income i.e., Doubleline Income and Eaton Vance go up and down completely randomly.

Pair Corralation between Doubleline Income and Eaton Vance

Considering the 90-day investment horizon Doubleline Income Solutions is expected to generate 0.45 times more return on investment than Eaton Vance. However, Doubleline Income Solutions is 2.21 times less risky than Eaton Vance. It trades about 0.15 of its potential returns per unit of risk. Eaton Vance Risk is currently generating about -0.12 per unit of risk. If you would invest  1,215  in Doubleline Income Solutions on December 28, 2024 and sell it today you would earn a total of  40.00  from holding Doubleline Income Solutions or generate 3.29% return on investment over 90 days.

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

Doubleline Income Solutions  vs.  Eaton Vance Risk

Doubleline Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Income Solutions are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. Despite quite persistent basic indicators, Doubleline Income is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Eaton Vance Risk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eaton Vance Risk has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively steady basic indicators, Eaton Vance is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Doubleline Income and Eaton Vance

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

The idea behind Doubleline Income Solutions and Eaton Vance Risk 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.