Correlation Between Highland Global and Doubleline Opportunistic

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

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

Diversification Opportunities for Highland Global and Doubleline Opportunistic

0.89

Correlation Coefficient

Highland Global  Doubleline Opportunistic

Very poor diversification

The 3 months correlation between Highland and Doubleline is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Highland Global Allocation and Doubleline Opportunistic Credi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Opportunistic and Highland Global 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 Highland Global Allocation are associated (or correlated) with Doubleline Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Opportunistic has no effect on the direction of Highland Global i.e., Highland Global and Doubleline Opportunistic go up and down completely randomly.

Pair Corralation between Highland Global and Doubleline Opportunistic

Given the investment horizon of 90 days Highland Global Allocation is expected to generate 3.14 times more return on investment than Doubleline Opportunistic. However, Highland Global is 3.14 times more volatile than Doubleline Opportunistic Credit. It trades about 0.07 of its potential returns per unit of risk. Doubleline Opportunistic Credit is currently generating about 0.05 per unit of risk. If you would invest  802.00  in Highland Global Allocation on March 2, 2025 and sell it today you would earn a total of  62.00  from holding Highland Global Allocation or generate 7.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Highland Global Allocation  vs.  Doubleline Opportunistic Credi

Highland Global Allo

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Global Allocation are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak essential indicators, Highland Global may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Doubleline Opportunistic

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Opportunistic Credit are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental drivers, Doubleline Opportunistic is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Highland Global and Doubleline Opportunistic

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

The idea behind Highland Global Allocation and Doubleline Opportunistic 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.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.