Correlation Between Prudential Qma and Doubleline Emerging

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

By analyzing existing cross correlation between Prudential Qma Emerging and Doubleline Emerging Markets, you can compare the effects of market volatilities on Prudential Qma and Doubleline Emerging 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 Prudential Qma with a short position of Doubleline Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Qma and Doubleline Emerging.

Diversification Opportunities for Prudential Qma and Doubleline Emerging

0.94

Correlation Coefficient

Prudential Qma  Doubleline Emerging

Almost no diversification

The 3 months correlation between Prudential and Doubleline is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Qma Emerging and Doubleline Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Emerging and Prudential Qma 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 Prudential Qma Emerging are associated (or correlated) with Doubleline Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Emerging has no effect on the direction of Prudential Qma i.e., Prudential Qma and Doubleline Emerging go up and down completely randomly.

Pair Corralation between Prudential Qma and Doubleline Emerging

Assuming the 90 days horizon Prudential Qma Emerging is expected to generate 2.16 times more return on investment than Doubleline Emerging. However, Prudential Qma is 2.16 times more volatile than Doubleline Emerging Markets. It trades about 0.22 of its potential returns per unit of risk. Doubleline Emerging Markets is currently generating about 0.31 per unit of risk. If you would invest  1,281  in Prudential Qma Emerging on May 11, 2025 and sell it today you would earn a total of  127.00  from holding Prudential Qma Emerging or generate 9.91% return on investment over 90 days.

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

Prudential Qma Emerging  vs.  Doubleline Emerging Markets

Prudential Qma Emerging

Risk-Adjusted Performance

Solid

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

Doubleline Emerging

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Emerging Markets are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Doubleline Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Prudential Qma and Doubleline Emerging

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

The idea behind Prudential Qma Emerging and Doubleline Emerging Markets 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.