Correlation Between Doubleline Yield and Ares Dynamic

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

By analyzing existing cross correlation between Doubleline Yield Opportunities and Ares Dynamic Credit, you can compare the effects of market volatilities on Doubleline Yield and Ares Dynamic 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 Yield with a short position of Ares Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Yield and Ares Dynamic.

Diversification Opportunities for Doubleline Yield and Ares Dynamic

0.72

Correlation Coefficient

Doubleline Yield  Ares Dynamic

Poor diversification

The 3 months correlation between Doubleline and Ares is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Yield Opportunities and Ares Dynamic Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ares Dynamic Credit and Doubleline Yield 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 Yield Opportunities are associated (or correlated) with Ares Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ares Dynamic Credit has no effect on the direction of Doubleline Yield i.e., Doubleline Yield and Ares Dynamic go up and down completely randomly.

Pair Corralation between Doubleline Yield and Ares Dynamic

Considering the 90-day investment horizon Doubleline Yield is expected to generate 2.67 times less return on investment than Ares Dynamic. But when comparing it to its historical volatility, Doubleline Yield Opportunities is 1.2 times less risky than Ares Dynamic. It trades about 0.1 of its potential returns per unit of risk. Ares Dynamic Credit is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  1,345  in Ares Dynamic Credit on May 7, 2025 and sell it today you would earn a total of  91.00  from holding Ares Dynamic Credit or generate 6.77% return on investment over 90 days.

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

Doubleline Yield Opportunities  vs.  Ares Dynamic Credit

Doubleline Yield Opp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Yield Opportunities are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Doubleline Yield is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Ares Dynamic Credit

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ares Dynamic Credit are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather inconsistent fundamental indicators, Ares Dynamic may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Doubleline Yield and Ares Dynamic

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

The idea behind Doubleline Yield Opportunities and Ares Dynamic Credit 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.