Correlation Between Ab Impact and Dunham High
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Dunham High 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 Ab Impact and Dunham High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Dunham High Yield, you can compare the effects of market volatilities on Ab Impact and Dunham High 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 Ab Impact with a short position of Dunham High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Dunham High.
Diversification Opportunities for Ab Impact and Dunham High
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ABIMX and Dunham is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Dunham High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham High Yield and Ab Impact 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 Ab Impact Municipal are associated (or correlated) with Dunham High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham High Yield has no effect on the direction of Ab Impact i.e., Ab Impact and Dunham High go up and down completely randomly.
Pair Corralation between Ab Impact and Dunham High
Assuming the 90 days horizon Ab Impact is expected to generate 1.48 times less return on investment than Dunham High. In addition to that, Ab Impact is 1.4 times more volatile than Dunham High Yield. It trades about 0.09 of its total potential returns per unit of risk. Dunham High Yield is currently generating about 0.18 per unit of volatility. If you would invest 808.00 in Dunham High Yield on September 12, 2024 and sell it today you would earn a total of 70.00 from holding Dunham High Yield or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Impact Municipal vs. Dunham High Yield
Performance |
| Timeline |
| Ab Impact Municipal |
| Dunham High Yield |
Ab Impact and Dunham High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Dunham High
The main advantage of trading using opposite Ab Impact and Dunham High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Dunham High 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 Dunham High will offset losses from the drop in Dunham High's long position.| Ab Impact vs. SCOR PK | Ab Impact vs. Morningstar Unconstrained Allocation | Ab Impact vs. Thrivent High Yield | Ab Impact vs. Via Renewables |
| Dunham High vs. SCOR PK | Dunham High vs. Morningstar Unconstrained Allocation | Dunham High vs. Via Renewables | Dunham High vs. Bondbloxx ETF Trust |
Check out your portfolio center.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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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