Correlation Between The Jensen and Doubleline Low

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

By analyzing existing cross correlation between The Jensen Portfolio and Doubleline Low Duration, you can compare the effects of market volatilities on The Jensen and Doubleline Low 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 The Jensen with a short position of Doubleline Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Jensen and Doubleline Low.

Diversification Opportunities for The Jensen and Doubleline Low

0.7

Correlation Coefficient

The Jensen  Doubleline Low

Poor diversification

The 3 months correlation between The and Doubleline is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding The Jensen Portfolio and Doubleline Low Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Low Duration and The Jensen 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 The Jensen Portfolio are associated (or correlated) with Doubleline Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Low Duration has no effect on the direction of The Jensen i.e., The Jensen and Doubleline Low go up and down completely randomly.

Pair Corralation between The Jensen and Doubleline Low

Assuming the 90 days horizon The Jensen Portfolio is expected to generate 111.51 times more return on investment than Doubleline Low. However, The Jensen is 111.51 times more volatile than Doubleline Low Duration. It trades about 0.13 of its potential returns per unit of risk. Doubleline Low Duration is currently generating about 0.19 per unit of risk. If you would invest  2,693  in The Jensen Portfolio on September 8, 2025 and sell it today you would earn a total of  1,700  from holding The Jensen Portfolio or generate 63.13% return on investment over 90 days.

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

The Jensen Portfolio  vs.  Doubleline Low Duration

Jensen Portfolio

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in The Jensen Portfolio are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, The Jensen showed solid returns over the last few months and may actually be approaching a breakup point.

Doubleline Low Duration

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Low Duration are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Doubleline Low is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with The Jensen and Doubleline Low

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

The idea behind The Jensen Portfolio and Doubleline Low Duration 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.