Correlation Between Chase Growth and Dunham Us
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Dunham Us 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 Chase Growth and Dunham Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chase Growth Fund and Dunham Enhanced Market, you can compare the effects of market volatilities on Chase Growth and Dunham Us 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 Chase Growth with a short position of Dunham Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Dunham Us.
Diversification Opportunities for Chase Growth and Dunham Us
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chase and Dunham is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Dunham Enhanced Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Enhanced Market and Chase Growth 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 Chase Growth Fund are associated (or correlated) with Dunham Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Enhanced Market has no effect on the direction of Chase Growth i.e., Chase Growth and Dunham Us go up and down completely randomly.
Pair Corralation between Chase Growth and Dunham Us
Assuming the 90 days horizon Chase Growth Fund is expected to under-perform the Dunham Us. In addition to that, Chase Growth is 1.21 times more volatile than Dunham Enhanced Market. It trades about -0.17 of its total potential returns per unit of risk. Dunham Enhanced Market is currently generating about -0.17 per unit of volatility. If you would invest 1,493 in Dunham Enhanced Market on November 29, 2024 and sell it today you would lose (38.00) from holding Dunham Enhanced Market or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Dunham Enhanced Market
Performance |
| Timeline |
| Chase Growth |
| Dunham Enhanced Market |
Chase Growth and Dunham Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Dunham Us
The main advantage of trading using opposite Chase Growth and Dunham Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Dunham Us 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 Us will offset losses from the drop in Dunham Us' long position.| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity Fund |
| Dunham Us vs. John Hancock Financial | Dunham Us vs. Prudential Financial Services | Dunham Us vs. Icon Financial Fund | Dunham Us vs. Mesirow Financial Small |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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