Correlation Between Dunham Corporate/govern and Pacific Funds
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Pacific Funds 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 Pacific Funds 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 Pacific Funds Short, you can compare the effects of market volatilities on Dunham Corporate/govern and Pacific Funds 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 Pacific Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Pacific Funds.
Diversification Opportunities for Dunham Corporate/govern and Pacific Funds
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and Pacific is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Pacific Funds Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Funds Short 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 Pacific Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Funds Short has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Pacific Funds go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Pacific Funds
Assuming the 90 days horizon Dunham Corporate/govern is expected to generate 1.32 times less return on investment than Pacific Funds. In addition to that, Dunham Corporate/govern is 2.61 times more volatile than Pacific Funds Short. It trades about 0.05 of its total potential returns per unit of risk. Pacific Funds Short is currently generating about 0.17 per unit of volatility. If you would invest 915.00 in Pacific Funds Short on August 30, 2024 and sell it today you would earn a total of 105.00 from holding Pacific Funds Short or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Porategovernment Bond vs. Pacific Funds Short
Performance |
| Timeline |
| Dunham Porategovernment |
| Pacific Funds Short |
Dunham Corporate/govern and Pacific Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Pacific Funds
The main advantage of trading using opposite Dunham Corporate/govern and Pacific Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Pacific Funds 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 Pacific Funds will offset losses from the drop in Pacific Funds' long position.| Dunham Corporate/govern vs. Pimco Income Fund | Dunham Corporate/govern vs. HUMANA INC | Dunham Corporate/govern vs. Aquagold International | Dunham Corporate/govern vs. Barloworld Ltd ADR |
| Pacific Funds vs. Us Government Securities | Pacific Funds vs. Dunham Porategovernment Bond | Pacific Funds vs. Us Government Securities | Pacific Funds vs. Aig Government Money |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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