Correlation Between Federated Municipal and Doubleline Core
Can any of the company-specific risk be diversified away by investing in both Federated Municipal and Doubleline Core 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 Federated Municipal and Doubleline Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Municipal High and Doubleline E Fixed, you can compare the effects of market volatilities on Federated Municipal and Doubleline Core 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 Federated Municipal with a short position of Doubleline Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Municipal and Doubleline Core.
Diversification Opportunities for Federated Municipal and Doubleline Core
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FEDERATED and Doubleline is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Federated Municipal High and Doubleline E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline E Fixed and Federated Municipal 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 Federated Municipal High are associated (or correlated) with Doubleline Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline E Fixed has no effect on the direction of Federated Municipal i.e., Federated Municipal and Doubleline Core go up and down completely randomly.
Pair Corralation between Federated Municipal and Doubleline Core
Assuming the 90 days horizon Federated Municipal High is expected to generate 1.01 times more return on investment than Doubleline Core. However, Federated Municipal is 1.01 times more volatile than Doubleline E Fixed. It trades about 0.39 of its potential returns per unit of risk. Doubleline E Fixed is currently generating about 0.17 per unit of risk. If you would invest 769.00 in Federated Municipal High on August 29, 2025 and sell it today you would earn a total of 37.00 from holding Federated Municipal High or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Federated Municipal High vs. Doubleline E Fixed
Performance |
| Timeline |
| Federated Municipal High |
| Doubleline E Fixed |
Federated Municipal and Doubleline Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Municipal and Doubleline Core
The main advantage of trading using opposite Federated Municipal and Doubleline Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Municipal position performs unexpectedly, Doubleline Core 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 Core will offset losses from the drop in Doubleline Core's long position.| Federated Municipal vs. T Rowe Price | Federated Municipal vs. Vanguard High Yield Tax Exempt | Federated Municipal vs. Rational Dividend Capture | Federated Municipal vs. Balanced Fund Retail |
| Doubleline Core vs. Putnam Global Financials | Doubleline Core vs. 1919 Financial Services | Doubleline Core vs. Gabelli Global Financial | Doubleline Core vs. Mesirow Financial High |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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