Correlation Between Doubleline Emerging and Ab E

Can any of the company-specific risk be diversified away by investing in both Doubleline Emerging and Ab E 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 Ab E 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 Ab E Opportunities, you can compare the effects of market volatilities on Doubleline Emerging and Ab E 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 Ab E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Emerging and Ab E.

Diversification Opportunities for Doubleline Emerging and Ab E

0.6

Correlation Coefficient

Doubleline Emerging  Ab E

Poor diversification

The 3 months correlation between Doubleline and ADGAX is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Emerging Markets and Ab E Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab E Opportunities 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 Ab E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab E Opportunities has no effect on the direction of Doubleline Emerging i.e., Doubleline Emerging and Ab E go up and down completely randomly.

Pair Corralation between Doubleline Emerging and Ab E

Assuming the 90 days horizon Doubleline Emerging is expected to generate 2.61 times less return on investment than Ab E. But when comparing it to its historical volatility, Doubleline Emerging Markets is 2.41 times less risky than Ab E. It trades about 0.28 of its potential returns per unit of risk. Ab E Opportunities is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  2,214  in Ab E Opportunities on May 1, 2025 and sell it today you would earn a total of  328.00  from holding Ab E Opportunities or generate 14.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Doubleline Emerging Markets  vs.  Ab E Opportunities

Doubleline Emerging

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Emerging Markets are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Doubleline Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ab E Opportunities

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ab E Opportunities are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ab E showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Doubleline Emerging and Ab E

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

The idea behind Doubleline Emerging Markets and Ab E Opportunities 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.