Correlation Between Dunham Corporate/govern and Jpmorgan Floating
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Jpmorgan Floating 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 Jpmorgan Floating 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 Jpmorgan Floating Rate, you can compare the effects of market volatilities on Dunham Corporate/govern and Jpmorgan Floating 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 Jpmorgan Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Jpmorgan Floating.
Diversification Opportunities for Dunham Corporate/govern and Jpmorgan Floating
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dunham and Jpmorgan is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Jpmorgan Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Floating Rate 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 Jpmorgan Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Floating Rate has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Jpmorgan Floating go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Jpmorgan Floating
Assuming the 90 days horizon Dunham Porategovernment Bond is expected to generate 1.92 times more return on investment than Jpmorgan Floating. However, Dunham Corporate/govern is 1.92 times more volatile than Jpmorgan Floating Rate. It trades about 0.14 of its potential returns per unit of risk. Jpmorgan Floating Rate is currently generating about 0.12 per unit of risk. If you would invest 1,254 in Dunham Porategovernment Bond on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Dunham Porategovernment Bond or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Porategovernment Bond vs. Jpmorgan Floating Rate
Performance |
| Timeline |
| Dunham Porategovernment |
| Jpmorgan Floating Rate |
Dunham Corporate/govern and Jpmorgan Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Jpmorgan Floating
The main advantage of trading using opposite Dunham Corporate/govern and Jpmorgan Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Jpmorgan Floating 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 Jpmorgan Floating will offset losses from the drop in Jpmorgan Floating'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 |
| Jpmorgan Floating vs. Oppenheimer Senior Floating | Jpmorgan Floating vs. Oppenheimer Senior Floating | Jpmorgan Floating vs. Floating Rate Fund | Jpmorgan Floating vs. Floating Rate 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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