Correlation Between Doubleline and Doubleline Long
Can any of the company-specific risk be diversified away by investing in both Doubleline 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 Doubleline and Doubleline Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline E Fixed and Doubleline Long Duration, you can compare the effects of market volatilities on Doubleline 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 Doubleline with a short position of Doubleline Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline and Doubleline Long.
Diversification Opportunities for Doubleline and Doubleline Long
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Doubleline and Doubleline is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline E Fixed 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 Doubleline 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 E Fixed 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 Doubleline i.e., Doubleline and Doubleline Long go up and down completely randomly.
Pair Corralation between Doubleline and Doubleline Long
Assuming the 90 days horizon Doubleline is expected to generate 1.71 times less return on investment than Doubleline Long. But when comparing it to its historical volatility, Doubleline E Fixed is 2.81 times less risky than Doubleline Long. It trades about 0.32 of its potential returns per unit of risk. Doubleline Long Duration is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 621.00 in Doubleline Long Duration on June 12, 2025 and sell it today you would earn a total of 16.00 from holding Doubleline Long Duration or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline E Fixed vs. Doubleline Long Duration
Performance |
| Timeline |
| Doubleline E Fixed |
| Doubleline Long Duration |
Doubleline and Doubleline Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline and Doubleline Long
The main advantage of trading using opposite Doubleline and Doubleline Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline 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.| Doubleline vs. Inflation Linked Fixed Income | Doubleline vs. Pimco Inflation Response | Doubleline vs. Ab Bond Inflation | Doubleline vs. Ab Bond Inflation |
| Doubleline Long vs. Dreyfus Short Intermediate | Doubleline Long vs. Maryland Short Term Tax Free | Doubleline Long vs. Short Intermediate Bond Fund | Doubleline Long vs. American Funds Tax Exempt |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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