Correlation Between Dunham Corporate/govern and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Calvert Global 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 Corporate/govern and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Porategovernment Bond and Calvert Global Energy, you can compare the effects of market volatilities on Dunham Corporate/govern and Calvert Global 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 Corporate/govern with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Calvert Global.
Diversification Opportunities for Dunham Corporate/govern and Calvert Global
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and Calvert is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy and Dunham Corporate/govern 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 Porategovernment Bond are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Calvert Global go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Calvert Global
Assuming the 90 days horizon Dunham Porategovernment Bond is expected to generate 0.32 times more return on investment than Calvert Global. However, Dunham Porategovernment Bond is 3.09 times less risky than Calvert Global. It trades about -0.09 of its potential returns per unit of risk. Calvert Global Energy is currently generating about -0.1 per unit of risk. If you would invest 1,278 in Dunham Porategovernment Bond on September 3, 2024 and sell it today you would lose (14.00) from holding Dunham Porategovernment Bond or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Porategovernment Bond vs. Calvert Global Energy
Performance |
| Timeline |
| Dunham Porategovernment |
| Calvert Global Energy |
Dunham Corporate/govern and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Calvert Global
The main advantage of trading using opposite Dunham Corporate/govern and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Calvert Global 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 Calvert Global will offset losses from the drop in Calvert Global's long position.| Dunham Corporate/govern vs. Ab Global Risk | Dunham Corporate/govern vs. Legg Mason Global | Dunham Corporate/govern vs. Artisan Global Unconstrained | Dunham Corporate/govern vs. Scharf Global Opportunity |
| Calvert Global vs. American Funds Smallcap | Calvert Global vs. American Fds Smallcap | Calvert Global vs. Smallcap World Fund | Calvert Global vs. Smallcap World Fund |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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