Correlation Between Mainstay Moderate and Doubleline Global
Can any of the company-specific risk be diversified away by investing in both Mainstay Moderate and Doubleline Global 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 Mainstay Moderate and Doubleline Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Moderate Allocation and Doubleline Global Bond, you can compare the effects of market volatilities on Mainstay Moderate and Doubleline Global 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 Mainstay Moderate with a short position of Doubleline Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Moderate and Doubleline Global.
Diversification Opportunities for Mainstay Moderate and Doubleline Global
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mainstay and Doubleline is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Moderate Allocation and Doubleline Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Global Bond and Mainstay Moderate 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 Mainstay Moderate Allocation are associated (or correlated) with Doubleline Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Global Bond has no effect on the direction of Mainstay Moderate i.e., Mainstay Moderate and Doubleline Global go up and down completely randomly.
Pair Corralation between Mainstay Moderate and Doubleline Global
Assuming the 90 days horizon Mainstay Moderate Allocation is expected to under-perform the Doubleline Global. In addition to that, Mainstay Moderate is 2.84 times more volatile than Doubleline Global Bond. It trades about -0.11 of its total potential returns per unit of risk. Doubleline Global Bond is currently generating about -0.18 per unit of volatility. If you would invest 853.00 in Doubleline Global Bond on October 7, 2024 and sell it today you would lose (33.00) from holding Doubleline Global Bond or give up 3.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mainstay Moderate Allocation vs. Doubleline Global Bond
Performance |
Timeline |
Mainstay Moderate |
Doubleline Global Bond |
Mainstay Moderate and Doubleline Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mainstay Moderate and Doubleline Global
The main advantage of trading using opposite Mainstay Moderate and Doubleline Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Moderate position performs unexpectedly, Doubleline Global 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 Global will offset losses from the drop in Doubleline Global's long position.Mainstay Moderate vs. Mh Elite Fund | Mainstay Moderate vs. Black Oak Emerging | Mainstay Moderate vs. Blrc Sgy Mnp | Mainstay Moderate vs. Artisan Emerging Markets |
Doubleline Global vs. Doubleline Strategic Modity | Doubleline Global vs. Doubleline Emerging Markets | Doubleline Global vs. Doubleline Shiller Enhanced | Doubleline Global vs. Doubleline Global Bond |
Check out your portfolio center.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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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