Correlation Between Blackrock Strategic and Dunham Appreciation
Can any of the company-specific risk be diversified away by investing in both Blackrock Strategic and Dunham Appreciation 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 Blackrock Strategic and Dunham Appreciation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Strategic Income and Dunham Appreciation Income, you can compare the effects of market volatilities on Blackrock Strategic and Dunham Appreciation 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 Blackrock Strategic with a short position of Dunham Appreciation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Strategic and Dunham Appreciation.
Diversification Opportunities for Blackrock Strategic and Dunham Appreciation
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and Dunham is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Strategic Income and Dunham Appreciation Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Appreciation and Blackrock Strategic 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 Blackrock Strategic Income are associated (or correlated) with Dunham Appreciation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Appreciation has no effect on the direction of Blackrock Strategic i.e., Blackrock Strategic and Dunham Appreciation go up and down completely randomly.
Pair Corralation between Blackrock Strategic and Dunham Appreciation
Assuming the 90 days horizon Blackrock Strategic Income is expected to under-perform the Dunham Appreciation. In addition to that, Blackrock Strategic is 2.5 times more volatile than Dunham Appreciation Income. It trades about -0.05 of its total potential returns per unit of risk. Dunham Appreciation Income is currently generating about 0.11 per unit of volatility. If you would invest 879.00 in Dunham Appreciation Income on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Dunham Appreciation Income or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Strategic Income vs. Dunham Appreciation Income
Performance |
| Timeline |
| Blackrock Strategic |
| Dunham Appreciation |
Blackrock Strategic and Dunham Appreciation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Strategic and Dunham Appreciation
The main advantage of trading using opposite Blackrock Strategic and Dunham Appreciation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Strategic position performs unexpectedly, Dunham Appreciation 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 Appreciation will offset losses from the drop in Dunham Appreciation's long position.| Blackrock Strategic vs. Barings Global Floating | Blackrock Strategic vs. Ab Global Bond | Blackrock Strategic vs. Dreyfusstandish Global Fixed | Blackrock Strategic vs. Mirova Global Green |
| Dunham Appreciation vs. Blackrock Strategic Opps | Dunham Appreciation vs. Blackrock Strategic Income | Dunham Appreciation vs. Jpmorgan Strategic Income | Dunham Appreciation vs. Jpmorgan Strategic Income |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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