Correlation Between Dunham Corporate/govern and Us Government
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Us Government 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 Government 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 Government Securities, you can compare the effects of market volatilities on Dunham Corporate/govern and Us Government 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 Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Us Government.
Diversification Opportunities for Dunham Corporate/govern and Us Government
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dunham and RGVCX is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Us Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Government Securities 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 Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Government Securities has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Us Government go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Us Government
Assuming the 90 days horizon Dunham Porategovernment Bond is expected to generate 0.92 times more return on investment than Us Government. However, Dunham Porategovernment Bond is 1.09 times less risky than Us Government. It trades about 0.08 of its potential returns per unit of risk. Us Government Securities is currently generating about 0.01 per unit of risk. If you would invest 1,254 in Dunham Porategovernment Bond on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Dunham Porategovernment Bond or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Porategovernment Bond vs. Us Government Securities
Performance |
| Timeline |
| Dunham Porategovernment |
| Us Government Securities |
Dunham Corporate/govern and Us Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Us Government
The main advantage of trading using opposite Dunham Corporate/govern and Us Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Us Government 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 Government will offset losses from the drop in Us Government'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 Government vs. Pace Municipal Fixed | Us Government vs. Morningstar Defensive Bond | Us Government vs. Artisan High Income | Us Government vs. Ishares Municipal 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |