Correlation Between Retailing Fund and Doubleline Emerging

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

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

Diversification Opportunities for Retailing Fund and Doubleline Emerging

0.82

Correlation Coefficient

Retailing Fund  Doubleline Emerging

Very poor diversification

The 3 months correlation between Retailing and Doubleline is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Retailing Fund Class and Doubleline Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Emerging and Retailing Fund 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 Retailing Fund Class 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 Retailing Fund i.e., Retailing Fund and Doubleline Emerging go up and down completely randomly.

Pair Corralation between Retailing Fund and Doubleline Emerging

Assuming the 90 days horizon Retailing Fund Class is expected to generate 2.27 times more return on investment than Doubleline Emerging. However, Retailing Fund is 2.27 times more volatile than Doubleline Emerging Markets. It trades about 0.14 of its potential returns per unit of risk. Doubleline Emerging Markets is currently generating about 0.25 per unit of risk. If you would invest  4,253  in Retailing Fund Class on May 25, 2025 and sell it today you would earn a total of  287.00  from holding Retailing Fund Class or generate 6.75% return on investment over 90 days.

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

Retailing Fund Class  vs.  Doubleline Emerging Markets

Retailing Fund Class

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Retailing Fund Class are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Retailing Fund 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 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Doubleline Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Retailing Fund and Doubleline Emerging

The main advantage of trading using opposite Retailing Fund and Doubleline Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retailing Fund 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 Retailing Fund Class 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.