Correlation Between Artisan High and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Artisan High 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 Artisan High and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan High Income and Dunham Real Estate, you can compare the effects of market volatilities on Artisan High 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 Artisan High with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan High and Dunham Real.
Diversification Opportunities for Artisan High and Dunham Real
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Artisan and Dunham is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Artisan High Income 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 Artisan High 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 Artisan High Income 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 Artisan High i.e., Artisan High and Dunham Real go up and down completely randomly.
Pair Corralation between Artisan High and Dunham Real
Assuming the 90 days horizon Artisan High is expected to generate 1.7 times less return on investment than Dunham Real. But when comparing it to its historical volatility, Artisan High Income is 4.83 times less risky than Dunham Real. It trades about 0.2 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,142 in Dunham Real Estate on September 4, 2024 and sell it today you would earn a total of 216.00 from holding Dunham Real Estate or generate 18.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Artisan High Income vs. Dunham Real Estate
Performance |
| Timeline |
| Artisan High Income |
| Dunham Real Estate |
Artisan High and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan High and Dunham Real
The main advantage of trading using opposite Artisan High and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan High 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.| Artisan High vs. Artisan Value Income | Artisan High vs. Artisan Developing World | Artisan High vs. Artisan Thematic Fund | Artisan High vs. Artisan Small Cap |
| Dunham Real vs. Vanguard Star Fund | Dunham Real vs. Artisan High Income | Dunham Real vs. Ab Global Risk | Dunham Real vs. T Rowe Price |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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