Correlation Between American Beacon and Dunham Real
Can any of the company-specific risk be diversified away by investing in both American Beacon 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 American Beacon and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon Ark and Dunham Real Estate, you can compare the effects of market volatilities on American Beacon 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 American Beacon with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Dunham Real.
Diversification Opportunities for American Beacon and Dunham Real
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Dunham is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon Ark 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 American Beacon 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 American Beacon Ark 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 American Beacon i.e., American Beacon and Dunham Real go up and down completely randomly.
Pair Corralation between American Beacon and Dunham Real
Assuming the 90 days horizon American Beacon Ark is expected to generate 2.4 times more return on investment than Dunham Real. However, American Beacon is 2.4 times more volatile than Dunham Real Estate. It trades about 0.13 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.11 per unit of risk. If you would invest 1,135 in American Beacon Ark on September 13, 2024 and sell it today you would earn a total of 446.00 from holding American Beacon Ark or generate 39.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Beacon Ark vs. Dunham Real Estate
Performance |
| Timeline |
| American Beacon Ark |
| Dunham Real Estate |
American Beacon and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Dunham Real
The main advantage of trading using opposite American Beacon and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon 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.| American Beacon vs. American Beacon Ark | American Beacon vs. Amer Beacon Ark | American Beacon vs. Amer Beacon Ark | American Beacon vs. Amer Beacon Ark |
| Dunham Real vs. Falcon Focus Scv | Dunham Real vs. Materials Portfolio Fidelity | Dunham Real vs. Scharf Global Opportunity | Dunham Real vs. Red Oak Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets |