Correlation Between Gabelli Convertible and Doubleline Core

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

By analyzing existing cross correlation between Gabelli Convertible And and Doubleline E Fixed, you can compare the effects of market volatilities on Gabelli Convertible and Doubleline Core 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 Gabelli Convertible with a short position of Doubleline Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Doubleline Core.

Diversification Opportunities for Gabelli Convertible and Doubleline Core

0.18

Correlation Coefficient

Gabelli Convertible  Doubleline Core

Average diversification

The 3 months correlation between Gabelli and Doubleline is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Doubleline E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline E Fixed and Gabelli Convertible 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 Gabelli Convertible And are associated (or correlated) with Doubleline Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline E Fixed has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Doubleline Core go up and down completely randomly.

Pair Corralation between Gabelli Convertible and Doubleline Core

Considering the 90-day investment horizon Gabelli Convertible And is not expected to generate positive returns. Moreover, Gabelli Convertible is 3.13 times more volatile than Doubleline E Fixed. It trades away all of its potential returns to assume current level of volatility. Doubleline E Fixed is currently generating about 0.03 per unit of risk. If you would invest  862.00  in Doubleline E Fixed on October 26, 2024 and sell it today you would earn a total of  52.00  from holding Doubleline E Fixed or generate 6.03% return on investment over 90 days.

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

Gabelli Convertible And  vs.  Doubleline E Fixed

Gabelli Convertible And

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Convertible And are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Gabelli Convertible may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Doubleline E Fixed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Doubleline E Fixed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Doubleline Core is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gabelli Convertible and Doubleline Core

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

The idea behind Gabelli Convertible And and Doubleline E Fixed 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.