Correlation Between Ab Value and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Ab Value 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 Value 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 Value Fund and Dunham Real Estate, you can compare the effects of market volatilities on Ab Value 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 Value with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Value and Dunham Real.
Diversification Opportunities for Ab Value and Dunham Real
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between ABVCX and Dunham is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ab Value Fund 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 Value 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 Value Fund 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 Value i.e., Ab Value and Dunham Real go up and down completely randomly.
Pair Corralation between Ab Value and Dunham Real
Assuming the 90 days horizon Ab Value Fund is expected to under-perform the Dunham Real. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ab Value Fund is 1.38 times less risky than Dunham Real. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Dunham Real Estate is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,338 in Dunham Real Estate on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Dunham Real Estate or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Value Fund vs. Dunham Real Estate
Performance |
| Timeline |
| Ab Value Fund |
| Dunham Real Estate |
Ab Value and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Value and Dunham Real
The main advantage of trading using opposite Ab Value and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Value 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 Value vs. Vanguard Value Index | Ab Value vs. Dodge Cox Stock | Ab Value vs. American Mutual Fund | Ab Value vs. American Funds American |
| Dunham Real vs. Ab Value Fund | Dunham Real vs. Iaadx | Dunham Real vs. Falcon Focus Scv | Dunham Real vs. Scharf Global Opportunity |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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