Correlation Between Doubleline Emerging and Anchor Risk

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

Diversification Opportunities for Doubleline Emerging and Anchor Risk

0.93

Correlation Coefficient

Doubleline Emerging  Anchor Risk

Almost no diversification

The 3 months correlation between Doubleline and Anchor is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Emerging Markets and Anchor Risk Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anchor Risk Managed 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 Anchor Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anchor Risk Managed has no effect on the direction of Doubleline Emerging i.e., Doubleline Emerging and Anchor Risk go up and down completely randomly.

Pair Corralation between Doubleline Emerging and Anchor Risk

Assuming the 90 days horizon Doubleline Emerging is expected to generate 1.14 times less return on investment than Anchor Risk. But when comparing it to its historical volatility, Doubleline Emerging Markets is 1.69 times less risky than Anchor Risk. It trades about 0.31 of its potential returns per unit of risk. Anchor Risk Managed is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,452  in Anchor Risk Managed on May 16, 2025 and sell it today you would earn a total of  109.00  from holding Anchor Risk Managed or generate 7.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Doubleline Emerging Markets  vs.  Anchor Risk Managed

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 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Doubleline Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Anchor Risk Managed

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Anchor Risk Managed are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Anchor Risk may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Doubleline Emerging and Anchor Risk

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

The idea behind Doubleline Emerging Markets and Anchor Risk Managed 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.