Correlation Between Eaton Vance and Doubleline Yield

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

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

Diversification Opportunities for Eaton Vance and Doubleline Yield

-0.13

Correlation Coefficient

Eaton Vance  Doubleline Yield

Good diversification

The 3 months correlation between Eaton and Doubleline is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Doubleline Yield Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Yield Opp and Eaton Vance 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 Eaton Vance Senior are associated (or correlated) with Doubleline Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Yield Opp has no effect on the direction of Eaton Vance i.e., Eaton Vance and Doubleline Yield go up and down completely randomly.

Pair Corralation between Eaton Vance and Doubleline Yield

Considering the 90-day investment horizon Eaton Vance Senior is expected to under-perform the Doubleline Yield. In addition to that, Eaton Vance is 1.07 times more volatile than Doubleline Yield Opportunities. It trades about -0.11 of its total potential returns per unit of risk. Doubleline Yield Opportunities is currently generating about 0.17 per unit of volatility. If you would invest  1,543  in Doubleline Yield Opportunities on December 29, 2024 and sell it today you would earn a total of  65.00  from holding Doubleline Yield Opportunities or generate 4.21% return on investment over 90 days.

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

Eaton Vance Senior  vs.  Doubleline Yield Opportunities

Eaton Vance Senior

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eaton Vance Senior has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Eaton Vance is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Doubleline Yield Opp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Yield Opportunities are ranked lower than 13 (%) 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.

Pair Trading with Eaton Vance and Doubleline Yield

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

The idea behind Eaton Vance Senior and Doubleline Yield Opportunities 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.