Correlation Between Dunham Corporate/govern and Clearbridge Small
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Clearbridge 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 Corporate/govern and Clearbridge Small 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 Clearbridge Small Cap, you can compare the effects of market volatilities on Dunham Corporate/govern and Clearbridge 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 Corporate/govern with a short position of Clearbridge Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Clearbridge Small.
Diversification Opportunities for Dunham Corporate/govern and Clearbridge Small
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dunham and Clearbridge is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Clearbridge Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Small Cap 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 Clearbridge Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Small Cap has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Clearbridge Small go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Clearbridge Small
Assuming the 90 days horizon Dunham Corporate/govern is expected to generate 3.9 times less return on investment than Clearbridge Small. But when comparing it to its historical volatility, Dunham Porategovernment Bond is 3.45 times less risky than Clearbridge Small. It trades about 0.05 of its potential returns per unit of risk. Clearbridge Small Cap is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,514 in Clearbridge Small Cap on August 28, 2024 and sell it today you would earn a total of 1,649 from holding Clearbridge Small Cap or generate 29.91% 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. Clearbridge Small Cap
Performance |
| Timeline |
| Dunham Porategovernment |
| Clearbridge Small Cap |
Dunham Corporate/govern and Clearbridge Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Clearbridge Small
The main advantage of trading using opposite Dunham Corporate/govern and Clearbridge Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Clearbridge 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 Clearbridge Small will offset losses from the drop in Clearbridge Small'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 |
| Clearbridge Small vs. Jhancock Short Duration | Clearbridge Small vs. Old Westbury Short Term | Clearbridge Small vs. Locorr Longshort Modities | Clearbridge Small vs. Calvert Short Duration |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |