Correlation Between Doubleline Core and State Street

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

By analyzing existing cross correlation between Doubleline Core Fixed and State Street Premier, you can compare the effects of market volatilities on Doubleline Core and State Street 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 Core with a short position of State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Core and State Street.

Diversification Opportunities for Doubleline Core and State Street

0.85

Correlation Coefficient

Doubleline Core  State Street

Very poor diversification

The 3 months correlation between Doubleline and State is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Core Fixed and State Street Premier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Premier and Doubleline Core 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 Core Fixed are associated (or correlated) with State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Premier has no effect on the direction of Doubleline Core i.e., Doubleline Core and State Street go up and down completely randomly.

Pair Corralation between Doubleline Core and State Street

Assuming the 90 days horizon Doubleline Core is expected to generate 2.15 times less return on investment than State Street. But when comparing it to its historical volatility, Doubleline Core Fixed is 4.27 times less risky than State Street. It trades about 0.25 of its potential returns per unit of risk. State Street Premier is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  12,928  in State Street Premier on July 28, 2025 and sell it today you would earn a total of  960.00  from holding State Street Premier or generate 7.43% return on investment over 90 days.

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

Doubleline Core Fixed  vs.  State Street Premier

Doubleline Core Fixed

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Core Fixed are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Doubleline Core is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

State Street Premier

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in State Street Premier are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, State Street may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Doubleline Core and State Street

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

The idea behind Doubleline Core Fixed and State Street Premier 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.