Correlation Between Ab Impact and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Dunham Real 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 Real 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 Real Estate, you can compare the effects of market volatilities on Ab Impact and Dunham Real 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 Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Dunham Real.
Diversification Opportunities for Ab Impact and Dunham Real
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ABIMX and Dunham is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Dunham Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Real Estate 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 Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Real Estate has no effect on the direction of Ab Impact i.e., Ab Impact and Dunham Real go up and down completely randomly.
Pair Corralation between Ab Impact and Dunham Real
Assuming the 90 days horizon Ab Impact is expected to generate 1.89 times less return on investment than Dunham Real. But when comparing it to its historical volatility, Ab Impact Municipal is 3.8 times less risky than Dunham Real. It trades about 0.05 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,255 in Dunham Real Estate on October 14, 2024 and sell it today you would earn a total of 140.00 from holding Dunham Real Estate or generate 11.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Impact Municipal vs. Dunham Real Estate
Performance |
| Timeline |
| Ab Impact Municipal |
| Dunham Real Estate |
Ab Impact and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Dunham Real
The main advantage of trading using opposite Ab Impact and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Dunham Real 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 Real will offset losses from the drop in Dunham Real's long position.| Ab Impact vs. Morningstar Defensive Bond | Ab Impact vs. Intermediate Term Bond Fund | Ab Impact vs. Dws Government Money | Ab Impact vs. Western Asset Municipal |
| Dunham Real vs. Qs Growth Fund | Dunham Real vs. Qs Large Cap | Dunham Real vs. Ab Impact Municipal | Dunham Real vs. Small Pany Growth |
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 CEOs Directory module to screen CEOs from public companies around the world.
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