Correlation Between Doubleline Emerging and Classic Value
Can any of the company-specific risk be diversified away by investing in both Doubleline Emerging and Classic Value 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 Classic Value 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 Classic Value Fund, you can compare the effects of market volatilities on Doubleline Emerging and Classic Value 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 Classic Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Emerging and Classic Value.
Diversification Opportunities for Doubleline Emerging and Classic Value
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Doubleline and Classic is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Emerging Markets and Classic Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Classic Value 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 Classic Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Classic Value has no effect on the direction of Doubleline Emerging i.e., Doubleline Emerging and Classic Value go up and down completely randomly.
Pair Corralation between Doubleline Emerging and Classic Value
Assuming the 90 days horizon Doubleline Emerging is expected to generate 1.69 times less return on investment than Classic Value. But when comparing it to its historical volatility, Doubleline Emerging Markets is 3.53 times less risky than Classic Value. It trades about 0.35 of its potential returns per unit of risk. Classic Value Fund is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,286 in Classic Value Fund on April 26, 2025 and sell it today you would earn a total of 242.00 from holding Classic Value Fund or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Emerging Markets vs. Classic Value Fund
Performance |
| Timeline |
| Doubleline Emerging |
| Classic Value |
Doubleline Emerging and Classic Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Emerging and Classic Value
The main advantage of trading using opposite Doubleline Emerging and Classic Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Emerging position performs unexpectedly, Classic Value 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 Classic Value will offset losses from the drop in Classic Value's long position.| Doubleline Emerging vs. The National Tax Free | Doubleline Emerging vs. Siit High Yield | Doubleline Emerging vs. Barings High Yield | Doubleline Emerging vs. Transamerica Bond Class |
| Classic Value vs. Transamerica Emerging Markets | Classic Value vs. Pace International Emerging | Classic Value vs. Rbc Emerging Markets | Classic Value vs. Jp Morgan Smartretirement |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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