Correlation Between DoubleLine Opportunistic and Global X

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

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

Diversification Opportunities for DoubleLine Opportunistic and Global X

0.9

Correlation Coefficient

DoubleLine Opportunistic  Global X

Almost no diversification

The 3 months correlation between DoubleLine and Global is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding DoubleLine Opportunistic Bond and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and DoubleLine Opportunistic 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 Opportunistic Bond are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of DoubleLine Opportunistic i.e., DoubleLine Opportunistic and Global X go up and down completely randomly.

Pair Corralation between DoubleLine Opportunistic and Global X

Given the investment horizon of 90 days DoubleLine Opportunistic Bond is expected to generate 0.23 times more return on investment than Global X. However, DoubleLine Opportunistic Bond is 4.27 times less risky than Global X. It trades about 0.45 of its potential returns per unit of risk. Global X Funds is currently generating about 0.1 per unit of risk. If you would invest  4,639  in DoubleLine Opportunistic Bond on June 12, 2024 and sell it today you would earn a total of  104.00  from holding DoubleLine Opportunistic Bond or generate 2.24% return on investment over 90 days.

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

DoubleLine Opportunistic Bond  vs.  Global X Funds

DoubleLine Opportunistic

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in DoubleLine Opportunistic Bond are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, DoubleLine Opportunistic is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Global X Funds

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Funds are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting essential indicators, Global X may actually be approaching a critical reversion point that can send shares even higher in October 2024.

Pair Trading with DoubleLine Opportunistic and Global X

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

The idea behind DoubleLine Opportunistic Bond and Global X Funds 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.