Correlation Between Doubleline Emerging and Federated Government
Can any of the company-specific risk be diversified away by investing in both Doubleline Emerging and Federated Government 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 Emerging and Federated Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Emerging Markets and Federated Government Ultrashort, you can compare the effects of market volatilities on Doubleline Emerging and Federated Government 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 Emerging with a short position of Federated Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Emerging and Federated Government.
Diversification Opportunities for Doubleline Emerging and Federated Government
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Doubleline and Federated is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Emerging Markets and Federated Government Ultrashor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Government and Doubleline Emerging 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 Emerging Markets are associated (or correlated) with Federated Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Government has no effect on the direction of Doubleline Emerging i.e., Doubleline Emerging and Federated Government go up and down completely randomly.
Pair Corralation between Doubleline Emerging and Federated Government
Assuming the 90 days horizon Doubleline Emerging Markets is expected to generate 4.5 times more return on investment than Federated Government. However, Doubleline Emerging is 4.5 times more volatile than Federated Government Ultrashort. It trades about 0.25 of its potential returns per unit of risk. Federated Government Ultrashort is currently generating about 0.1 per unit of risk. If you would invest 871.00 in Doubleline Emerging Markets on April 3, 2025 and sell it today you would earn a total of 50.00 from holding Doubleline Emerging Markets or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Emerging Markets vs. Federated Government Ultrashor
Performance |
| Timeline |
| Doubleline Emerging |
| Federated Government |
Doubleline Emerging and Federated Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Emerging and Federated Government
The main advantage of trading using opposite Doubleline Emerging and Federated Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Emerging position performs unexpectedly, Federated Government 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 Federated Government will offset losses from the drop in Federated Government's long position.| Doubleline Emerging vs. Tiaa Cref Inflation Link | Doubleline Emerging vs. Atac Inflation Rotation | Doubleline Emerging vs. American Funds Inflation | Doubleline Emerging vs. Ab Bond Inflation |
| Federated Government vs. Angel Oak Financial | Federated Government vs. Davis Financial Fund | Federated Government vs. Rmb Mendon Financial | Federated Government vs. Prudential Financial Services |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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