Correlation Between DoubleLine Shiller and First Trust
Can any of the company-specific risk be diversified away by investing in both DoubleLine Shiller and First Trust 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 Shiller and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DoubleLine Shiller CAPE and First Trust Structured, you can compare the effects of market volatilities on DoubleLine Shiller and First Trust 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 Shiller with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of DoubleLine Shiller and First Trust.
Diversification Opportunities for DoubleLine Shiller and First Trust
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DoubleLine and First is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding DoubleLine Shiller CAPE and First Trust Structured in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Structured and DoubleLine Shiller 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 Shiller CAPE are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Structured has no effect on the direction of DoubleLine Shiller i.e., DoubleLine Shiller and First Trust go up and down completely randomly.
Pair Corralation between DoubleLine Shiller and First Trust
Given the investment horizon of 90 days DoubleLine Shiller CAPE is expected to generate 2.46 times more return on investment than First Trust. However, DoubleLine Shiller is 2.46 times more volatile than First Trust Structured. It trades about 0.18 of its potential returns per unit of risk. First Trust Structured is currently generating about 0.14 per unit of risk. If you would invest 2,968 in DoubleLine Shiller CAPE on April 28, 2025 and sell it today you would earn a total of 256.00 from holding DoubleLine Shiller CAPE or generate 8.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
DoubleLine Shiller CAPE vs. First Trust Structured
Performance |
Timeline |
DoubleLine Shiller CAPE |
First Trust Structured |
DoubleLine Shiller and First Trust Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DoubleLine Shiller and First Trust
The main advantage of trading using opposite DoubleLine Shiller and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DoubleLine Shiller position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.DoubleLine Shiller vs. FT Vest Equity | DoubleLine Shiller vs. Zillow Group Class | DoubleLine Shiller vs. Northern Lights | DoubleLine Shiller vs. VanEck Vectors Moodys |
First Trust vs. Valued Advisers Trust | First Trust vs. Columbia Diversified Fixed | First Trust vs. Principal Exchange Traded Funds | First Trust vs. Doubleline Etf Trust |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |