Correlation Between Dunham Corporate/govern and Nasdaq-100(r)
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Nasdaq-100(r) 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 Nasdaq-100(r) 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 Nasdaq 100 2x Strategy, you can compare the effects of market volatilities on Dunham Corporate/govern and Nasdaq-100(r) 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 Nasdaq-100(r). Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Nasdaq-100(r).
Diversification Opportunities for Dunham Corporate/govern and Nasdaq-100(r)
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dunham and Nasdaq-100(r) is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Nasdaq 100 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 2x 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 Nasdaq-100(r). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 2x has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Nasdaq-100(r) go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Nasdaq-100(r)
Assuming the 90 days horizon Dunham Porategovernment Bond is expected to generate 0.14 times more return on investment than Nasdaq-100(r). However, Dunham Porategovernment Bond is 6.9 times less risky than Nasdaq-100(r). It trades about 0.24 of its potential returns per unit of risk. Nasdaq 100 2x Strategy is currently generating about -0.01 per unit of risk. If you would invest 1,244 in Dunham Porategovernment Bond on November 28, 2024 and sell it today you would earn a total of 17.00 from holding Dunham Porategovernment Bond or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dunham Porategovernment Bond vs. Nasdaq 100 2x Strategy
Performance |
| Timeline |
| Dunham Porategovernment |
| Nasdaq 100 2x |
Dunham Corporate/govern and Nasdaq-100(r) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Nasdaq-100(r)
The main advantage of trading using opposite Dunham Corporate/govern and Nasdaq-100(r) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Nasdaq-100(r) 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 Nasdaq-100(r) will offset losses from the drop in Nasdaq-100(r)'s long position.| Dunham Corporate/govern vs. Dunham Appreciation Income | Dunham Corporate/govern vs. Dunham Dynamic Macro | Dunham Corporate/govern vs. Dunham Small Cap | Dunham Corporate/govern vs. Dunham Emerging Markets |
| Nasdaq-100(r) vs. Ab Small Cap | Nasdaq-100(r) vs. Champlain Small | Nasdaq-100(r) vs. Touchstone Small Cap | Nasdaq-100(r) vs. Ashmore Emerging Markets |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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