Correlation Between Doubleline Emerging and Federated High
Can any of the company-specific risk be diversified away by investing in both Doubleline Emerging and Federated High 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 High 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 High Yield, you can compare the effects of market volatilities on Doubleline Emerging and Federated High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Emerging and Federated High.
Diversification Opportunities for Doubleline Emerging and Federated High
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Doubleline and Federated is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Emerging Markets and Federated High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Yield has no effect on the direction of Doubleline Emerging i.e., Doubleline Emerging and Federated High go up and down completely randomly.
Pair Corralation between Doubleline Emerging and Federated High
Assuming the 90 days horizon Doubleline Emerging Markets is expected to under-perform the Federated High. In addition to that, Doubleline Emerging is 2.15 times more volatile than Federated High Yield. It trades about -0.1 of its total potential returns per unit of risk. Federated High Yield is currently generating about -0.05 per unit of volatility. If you would invest 648.00 in Federated High Yield on May 2, 2025 and sell it today you would lose (1.00) from holding Federated High Yield or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Emerging Markets vs. Federated High Yield
Performance |
| Timeline |
| Doubleline Emerging |
| Federated High Yield |
Doubleline Emerging and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Emerging and Federated High
The main advantage of trading using opposite Doubleline Emerging and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Emerging position performs unexpectedly, Federated High 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 High will offset losses from the drop in Federated High's long position.| Doubleline Emerging vs. Hsbc Government Money | Doubleline Emerging vs. Ridgeworth Seix Government | Doubleline Emerging vs. Loomis Sayles Limited | Doubleline Emerging vs. Jpmorgan Government Bond |
| Federated High vs. Transamerica International Small | Federated High vs. Jhvit International Small | Federated High vs. United Kingdom Small | Federated High vs. Scout Small Cap |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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