Correlation Between Doubleline Global and Voya International

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

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

Diversification Opportunities for Doubleline Global and Voya International

0.84

Correlation Coefficient

Doubleline Global  Voya International

Very poor diversification

The 3 months correlation between Doubleline and Voya is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Global Bond and Voya International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya International Index and Doubleline 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 Doubleline Global Bond are associated (or correlated) with Voya International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya International Index has no effect on the direction of Doubleline Global i.e., Doubleline Global and Voya International go up and down completely randomly.

Pair Corralation between Doubleline Global and Voya International

Assuming the 90 days horizon Doubleline Global Bond is expected to under-perform the Voya International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Doubleline Global Bond is 2.36 times less risky than Voya International. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Voya International Index is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,047  in Voya International Index on September 13, 2024 and sell it today you would earn a total of  95.00  from holding Voya International Index or generate 9.07% return on investment over 90 days.

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

Doubleline Global Bond  vs.  Voya International Index

Doubleline Global Bond

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Doubleline Global Bond has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Doubleline Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Voya International Index

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya International Index has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Voya International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Doubleline Global and Voya International

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

The idea behind Doubleline Global Bond and Voya International Index 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.