Correlation Between Dunham Corporate/govern and Us Targeted
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Us Targeted 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 Us Targeted 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 Us Targeted Value, you can compare the effects of market volatilities on Dunham Corporate/govern and Us Targeted 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 Us Targeted. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Us Targeted.
Diversification Opportunities for Dunham Corporate/govern and Us Targeted
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dunham and DFFVX is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Us Targeted Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Targeted Value 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 Us Targeted. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Targeted Value has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Us Targeted go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Us Targeted
Assuming the 90 days horizon Dunham Corporate/govern is expected to generate 4.77 times less return on investment than Us Targeted. But when comparing it to its historical volatility, Dunham Porategovernment Bond is 3.72 times less risky than Us Targeted. It trades about 0.05 of its potential returns per unit of risk. Us Targeted Value is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,697 in Us Targeted Value on August 29, 2024 and sell it today you would earn a total of 1,032 from holding Us Targeted Value or generate 38.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Porategovernment Bond vs. Us Targeted Value
Performance |
| Timeline |
| Dunham Porategovernment |
| Us Targeted Value |
Dunham Corporate/govern and Us Targeted Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Us Targeted
The main advantage of trading using opposite Dunham Corporate/govern and Us Targeted positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Us Targeted 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 Us Targeted will offset losses from the drop in Us Targeted's long position.| Dunham Corporate/govern vs. Dunham Dynamic Macro | Dunham Corporate/govern vs. Dunham Appreciation Income | Dunham Corporate/govern vs. Dunham Small Cap | Dunham Corporate/govern vs. Dunham Emerging Markets |
| Us Targeted vs. Dreyfus Government Cash | Us Targeted vs. Lord Abbett Government | Us Targeted vs. John Hancock Government | Us Targeted vs. Dunham Porategovernment Bond |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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