Correlation Between Emerging Markets and Dunham Corporate/govern
Can any of the company-specific risk be diversified away by investing in both Emerging Markets and Dunham Corporate/govern 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 Emerging Markets and Dunham Corporate/govern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Emerging Markets and Dunham Porategovernment Bond, you can compare the effects of market volatilities on Emerging Markets and Dunham Corporate/govern 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 Emerging Markets with a short position of Dunham Corporate/govern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Markets and Dunham Corporate/govern.
Diversification Opportunities for Emerging Markets and Dunham Corporate/govern
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emerging and Dunham is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding The Emerging Markets and Dunham Porategovernment Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Porategovernment and Emerging Markets 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 The Emerging Markets are associated (or correlated) with Dunham Corporate/govern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Porategovernment has no effect on the direction of Emerging Markets i.e., Emerging Markets and Dunham Corporate/govern go up and down completely randomly.
Pair Corralation between Emerging Markets and Dunham Corporate/govern
Assuming the 90 days horizon The Emerging Markets is expected to under-perform the Dunham Corporate/govern. In addition to that, Emerging Markets is 3.13 times more volatile than Dunham Porategovernment Bond. It trades about -0.24 of its total potential returns per unit of risk. Dunham Porategovernment Bond is currently generating about 0.08 per unit of volatility. If you would invest 1,254 in Dunham Porategovernment Bond on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Dunham Porategovernment Bond or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Emerging Markets vs. Dunham Porategovernment Bond
Performance |
| Timeline |
| Emerging Markets |
| Dunham Porategovernment |
Emerging Markets and Dunham Corporate/govern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Markets and Dunham Corporate/govern
The main advantage of trading using opposite Emerging Markets and Dunham Corporate/govern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets position performs unexpectedly, Dunham Corporate/govern 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 Corporate/govern will offset losses from the drop in Dunham Corporate/govern's long position.| Emerging Markets vs. Dunham Porategovernment Bond | Emerging Markets vs. Dws Government Money | Emerging Markets vs. Dreyfus Government Cash | Emerging Markets vs. Virtus Seix Government |
| Dunham Corporate/govern vs. Dunham Dynamic Macro | Dunham Corporate/govern vs. Dunham Appreciation Income | Dunham Corporate/govern vs. Dunham Small Cap | Dunham Corporate/govern vs. Dunham Emerging Markets |
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.
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