Correlation Between Doubleline Emerging and Federated Municipal

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

Diversification Opportunities for Doubleline Emerging and Federated Municipal

0.94

Correlation Coefficient

Doubleline Emerging  Federated Municipal

Almost no diversification

The 3 months correlation between Doubleline and FEDERATED is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Emerging Markets and Federated Municipal High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Municipal High 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 Federated Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Municipal High has no effect on the direction of Doubleline Emerging i.e., Doubleline Emerging and Federated Municipal go up and down completely randomly.

Pair Corralation between Doubleline Emerging and Federated Municipal

Assuming the 90 days horizon Doubleline Emerging is expected to generate 1.33 times less return on investment than Federated Municipal. In addition to that, Doubleline Emerging is 1.54 times more volatile than Federated Municipal High. It trades about 0.21 of its total potential returns per unit of risk. Federated Municipal High is currently generating about 0.42 per unit of volatility. If you would invest  767.00  in Federated Municipal High on August 31, 2025 and sell it today you would earn a total of  39.00  from holding Federated Municipal High or generate 5.08% return on investment over 90 days.

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

Doubleline Emerging Markets  vs.  Federated Municipal High

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 16 (%) 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.

Federated Municipal High

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in Federated Municipal High are ranked lower than 33 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Federated Municipal is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Doubleline Emerging and Federated Municipal

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

The idea behind Doubleline Emerging Markets and Federated Municipal High 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..