Correlation Between Doubleline Income and Ab All

Can any of the company-specific risk be diversified away by investing in both Doubleline Income and Ab All 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 Income and Ab All into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Doubleline Income and Ab All China, you can compare the effects of market volatilities on Doubleline Income and Ab All 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 Income with a short position of Ab All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Income and Ab All.

Diversification Opportunities for Doubleline Income and Ab All

-0.55

Correlation Coefficient

Doubleline Income  Ab All

Excellent diversification

The 3 months correlation between Doubleline and ACEAX is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Income and Ab All China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab All China and Doubleline Income 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 Income are associated (or correlated) with Ab All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab All China has no effect on the direction of Doubleline Income i.e., Doubleline Income and Ab All go up and down completely randomly.

Pair Corralation between Doubleline Income and Ab All

Assuming the 90 days horizon Doubleline Income is expected to generate 0.05 times more return on investment than Ab All. However, Doubleline Income is 18.96 times less risky than Ab All. It trades about 0.14 of its potential returns per unit of risk. Ab All China is currently generating about -0.05 per unit of risk. If you would invest  791.00  in Doubleline Income on September 29, 2024 and sell it today you would earn a total of  8.00  from holding Doubleline Income or generate 1.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Doubleline Income  vs.  Ab All China

Doubleline Income

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Income are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Doubleline Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ab All China

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ab All China has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Doubleline Income and Ab All

The main advantage of trading using opposite Doubleline Income and Ab All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Income position performs unexpectedly, Ab All 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 Ab All will offset losses from the drop in Ab All's long position.

The idea behind Doubleline Income and Ab All China pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.