Correlation Between Dunham Corporate/govern and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Natixis Oakmark 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 Natixis Oakmark 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 Natixis Oakmark, you can compare the effects of market volatilities on Dunham Corporate/govern and Natixis Oakmark 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 Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Natixis Oakmark.
Diversification Opportunities for Dunham Corporate/govern and Natixis Oakmark
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dunham and Natixis is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Natixis Oakmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark 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 Natixis Oakmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Oakmark has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Natixis Oakmark
Assuming the 90 days horizon Dunham Corporate/govern is expected to generate 9.52 times less return on investment than Natixis Oakmark. But when comparing it to its historical volatility, Dunham Porategovernment Bond is 3.69 times less risky than Natixis Oakmark. It trades about 0.1 of its potential returns per unit of risk. Natixis Oakmark is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 3,409 in Natixis Oakmark on August 31, 2024 and sell it today you would earn a total of 211.00 from holding Natixis Oakmark or generate 6.19% 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. Natixis Oakmark
Performance |
| Timeline |
| Dunham Porategovernment |
| Natixis Oakmark |
Dunham Corporate/govern and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Natixis Oakmark
The main advantage of trading using opposite Dunham Corporate/govern and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Natixis Oakmark 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 Natixis Oakmark will offset losses from the drop in Natixis Oakmark's long position.| Dunham Corporate/govern vs. Metropolitan West Total | Dunham Corporate/govern vs. Metropolitan West Total | Dunham Corporate/govern vs. Pimco Total Return | Dunham Corporate/govern vs. Total Return Fund |
| Natixis Oakmark vs. Dunham Porategovernment Bond | Natixis Oakmark vs. Prudential Government Income | Natixis Oakmark vs. Franklin Government Money | Natixis Oakmark vs. Inverse Government Long |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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