Correlation Between Greenspring Fund and Doubleline Core

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

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

Diversification Opportunities for Greenspring Fund and Doubleline Core

-0.67

Correlation Coefficient

Greenspring Fund  Doubleline Core

Excellent diversification

The 3 months correlation between Greenspring and Doubleline is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Greenspring Fund Retail and Doubleline Core Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Core Fixed and Greenspring Fund 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 Greenspring Fund Retail 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 Core Fixed has no effect on the direction of Greenspring Fund i.e., Greenspring Fund and Doubleline Core go up and down completely randomly.

Pair Corralation between Greenspring Fund and Doubleline Core

Assuming the 90 days horizon Greenspring Fund Retail is expected to under-perform the Doubleline Core. In addition to that, Greenspring Fund is 3.7 times more volatile than Doubleline Core Fixed. It trades about -0.08 of its total potential returns per unit of risk. Doubleline Core Fixed is currently generating about 0.18 per unit of volatility. If you would invest  904.00  in Doubleline Core Fixed on December 24, 2024 and sell it today you would earn a total of  26.00  from holding Doubleline Core Fixed or generate 2.88% return on investment over 90 days.

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

Greenspring Fund Retail  vs.  Doubleline Core Fixed

Greenspring Fund Retail

Risk-Adjusted Performance

Very Weak

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

Doubleline Core Fixed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Core Fixed are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental 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 Greenspring Fund and Doubleline Core

The main advantage of trading using opposite Greenspring Fund and Doubleline Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenspring Fund 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 Greenspring Fund Retail and Doubleline Core 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.