Correlation Between Shelton Tactical and Doubleline Long
Can any of the company-specific risk be diversified away by investing in both Shelton Tactical and Doubleline Long 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 Shelton Tactical and Doubleline Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Tactical Credit and Doubleline Long Duration, you can compare the effects of market volatilities on Shelton Tactical and Doubleline Long 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 Shelton Tactical with a short position of Doubleline Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Tactical and Doubleline Long.
Diversification Opportunities for Shelton Tactical and Doubleline Long
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shelton and Doubleline is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Tactical Credit and Doubleline Long Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Long Duration and Shelton Tactical 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 Shelton Tactical Credit are associated (or correlated) with Doubleline Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Long Duration has no effect on the direction of Shelton Tactical i.e., Shelton Tactical and Doubleline Long go up and down completely randomly.
Pair Corralation between Shelton Tactical and Doubleline Long
Assuming the 90 days horizon Shelton Tactical is expected to generate 2.84 times less return on investment than Doubleline Long. But when comparing it to its historical volatility, Shelton Tactical Credit is 2.56 times less risky than Doubleline Long. It trades about 0.14 of its potential returns per unit of risk. Doubleline Long Duration is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 613.00 in Doubleline Long Duration on August 29, 2025 and sell it today you would earn a total of 31.00 from holding Doubleline Long Duration or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Tactical Credit vs. Doubleline Long Duration
Performance |
| Timeline |
| Shelton Tactical Credit |
| Doubleline Long Duration |
Shelton Tactical and Doubleline Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Tactical and Doubleline Long
The main advantage of trading using opposite Shelton Tactical and Doubleline Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Tactical position performs unexpectedly, Doubleline Long 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 Long will offset losses from the drop in Doubleline Long's long position.| Shelton Tactical vs. Morningstar Municipal Bond | Shelton Tactical vs. Federated Municipal High | Shelton Tactical vs. Transamerica Intermediate Muni | Shelton Tactical vs. Blackrock Pa Muni |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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