Correlation Between Dunham Appreciation and Dunham Small
Can any of the company-specific risk be diversified away by investing in both Dunham Appreciation and Dunham Small 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 Dunham Appreciation and Dunham Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Appreciation Income and Dunham Small Cap, you can compare the effects of market volatilities on Dunham Appreciation and Dunham Small 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 Dunham Appreciation with a short position of Dunham Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Appreciation and Dunham Small.
Diversification Opportunities for Dunham Appreciation and Dunham Small
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dunham and Dunham is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Appreciation Income and Dunham Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Small Cap and Dunham Appreciation 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 Dunham Appreciation Income are associated (or correlated) with Dunham Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Small Cap has no effect on the direction of Dunham Appreciation i.e., Dunham Appreciation and Dunham Small go up and down completely randomly.
Pair Corralation between Dunham Appreciation and Dunham Small
Assuming the 90 days horizon Dunham Appreciation Income is expected to under-perform the Dunham Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dunham Appreciation Income is 12.44 times less risky than Dunham Small. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Dunham Small Cap is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,454 in Dunham Small Cap on November 8, 2024 and sell it today you would earn a total of 38.00 from holding Dunham Small Cap or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Appreciation Income vs. Dunham Small Cap
Performance |
| Timeline |
| Dunham Appreciation |
| Dunham Small Cap |
Dunham Appreciation and Dunham Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Appreciation and Dunham Small
The main advantage of trading using opposite Dunham Appreciation and Dunham Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Appreciation position performs unexpectedly, Dunham Small 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 Small will offset losses from the drop in Dunham Small's long position.| Dunham Appreciation vs. Abbey Capital Futures | Dunham Appreciation vs. Short Duration Inflation | Dunham Appreciation vs. Pimco Inflation Response | Dunham Appreciation vs. Credit Suisse Multialternative |
| Dunham Small vs. Gabelli Global Financial | Dunham Small vs. Financial Industries Fund | Dunham Small vs. Davis Financial Fund | Dunham Small vs. Transamerica Financial Life |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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