Correlation Between Aristotle Funds and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Aristotle Funds 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 Aristotle Funds and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aristotle Funds Series and Dunham Real Estate, you can compare the effects of market volatilities on Aristotle Funds 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 Aristotle Funds with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aristotle Funds and Dunham Real.
Diversification Opportunities for Aristotle Funds and Dunham Real
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aristotle and Dunham is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aristotle Funds Series 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 Aristotle Funds 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 Aristotle Funds Series 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 Aristotle Funds i.e., Aristotle Funds and Dunham Real go up and down completely randomly.
Pair Corralation between Aristotle Funds and Dunham Real
Assuming the 90 days horizon Aristotle Funds Series is expected to generate 0.88 times more return on investment than Dunham Real. However, Aristotle Funds Series is 1.14 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 0.04 per unit of risk. If you would invest 1,300 in Aristotle Funds Series on September 3, 2024 and sell it today you would earn a total of 289.00 from holding Aristotle Funds Series or generate 22.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 83.03% |
| Values | Daily Returns |
Aristotle Funds Series vs. Dunham Real Estate
Performance |
| Timeline |
| Aristotle Funds Series |
| Dunham Real Estate |
Aristotle Funds and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aristotle Funds and Dunham Real
The main advantage of trading using opposite Aristotle Funds and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aristotle Funds 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.| Aristotle Funds vs. Franklin Government Money | Aristotle Funds vs. General Money Market | Aristotle Funds vs. Transamerica Funds | Aristotle Funds vs. Lord Abbett Emerging |
| Dunham Real vs. Ep Emerging Markets | Dunham Real vs. Rbc Emerging Markets | Dunham Real vs. Transamerica Emerging Markets | 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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