Correlation Between Cardinal Small and Dunham High
Can any of the company-specific risk be diversified away by investing in both Cardinal Small and Dunham High 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 Cardinal Small and Dunham High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Small Cap and Dunham High Yield, you can compare the effects of market volatilities on Cardinal Small and Dunham High 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 Cardinal Small with a short position of Dunham High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Small and Dunham High.
Diversification Opportunities for Cardinal Small and Dunham High
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cardinal and Dunham is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Small Cap and Dunham High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham High Yield and Cardinal Small 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 Cardinal Small Cap are associated (or correlated) with Dunham High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham High Yield has no effect on the direction of Cardinal Small i.e., Cardinal Small and Dunham High go up and down completely randomly.
Pair Corralation between Cardinal Small and Dunham High
Assuming the 90 days horizon Cardinal Small is expected to generate 1.11 times less return on investment than Dunham High. In addition to that, Cardinal Small is 4.11 times more volatile than Dunham High Yield. It trades about 0.03 of its total potential returns per unit of risk. Dunham High Yield is currently generating about 0.12 per unit of volatility. If you would invest 741.00 in Dunham High Yield on October 9, 2024 and sell it today you would earn a total of 126.00 from holding Dunham High Yield or generate 17.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Small Cap vs. Dunham High Yield
Performance |
| Timeline |
| Cardinal Small Cap |
| Dunham High Yield |
Cardinal Small and Dunham High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Small and Dunham High
The main advantage of trading using opposite Cardinal Small and Dunham High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Small position performs unexpectedly, Dunham High 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 High will offset losses from the drop in Dunham High's long position.| Cardinal Small vs. John Hancock Emerging | Cardinal Small vs. Nasdaq 100 2x Strategy | Cardinal Small vs. Virtus Multi Strategy Target | Cardinal Small vs. Dws Emerging Markets |
| Dunham High vs. Prudential Government Money | Dunham High vs. Cref Money Market | Dunham High vs. Ab Government Exchange | Dunham High vs. Principal Fds Money |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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