Correlation Between Bbh Intermediate and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate 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 Bbh Intermediate and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Dunham Real Estate, you can compare the effects of market volatilities on Bbh Intermediate 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 Bbh Intermediate with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Dunham Real.
Diversification Opportunities for Bbh Intermediate and Dunham Real
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bbh and Dunham is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate 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 Bbh Intermediate 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 Bbh Intermediate 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 Bbh Intermediate i.e., Bbh Intermediate and Dunham Real go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Dunham Real
Assuming the 90 days horizon Bbh Intermediate is expected to generate 5.1 times less return on investment than Dunham Real. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 6.6 times less risky than Dunham Real. It trades about 0.11 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,242 in Dunham Real Estate on September 2, 2024 and sell it today you would earn a total of 287.00 from holding Dunham Real Estate or generate 23.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Dunham Real Estate
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Dunham Real Estate |
Bbh Intermediate and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Dunham Real
The main advantage of trading using opposite Bbh Intermediate and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate 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.The idea behind Bbh Intermediate Municipal and Dunham Real Estate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Dunham Real vs. Realty Income | Dunham Real vs. Dynex Capital | Dunham Real vs. First Industrial Realty | Dunham Real vs. Healthcare Realty Trust |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |