Correlation Between Dunham Corporate/govern and Pgim Securitized
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Pgim Securitized 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 Pgim Securitized 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 Pgim Securitized Credit, you can compare the effects of market volatilities on Dunham Corporate/govern and Pgim Securitized 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 Pgim Securitized. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Pgim Securitized.
Diversification Opportunities for Dunham Corporate/govern and Pgim Securitized
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dunham and Pgim is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Pgim Securitized Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Securitized Credit 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 Pgim Securitized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Securitized Credit has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Pgim Securitized go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Pgim Securitized
Assuming the 90 days horizon Dunham Porategovernment Bond is expected to generate 2.94 times more return on investment than Pgim Securitized. However, Dunham Corporate/govern is 2.94 times more volatile than Pgim Securitized Credit. It trades about 0.1 of its potential returns per unit of risk. Pgim Securitized Credit is currently generating about 0.23 per unit of risk. If you would invest 1,256 in Dunham Porategovernment Bond on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Dunham Porategovernment Bond or generate 0.64% 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. Pgim Securitized Credit
Performance |
| Timeline |
| Dunham Porategovernment |
| Pgim Securitized Credit |
Dunham Corporate/govern and Pgim Securitized Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Pgim Securitized
The main advantage of trading using opposite Dunham Corporate/govern and Pgim Securitized positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Pgim Securitized 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 Pgim Securitized will offset losses from the drop in Pgim Securitized'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 |
| Pgim Securitized vs. Jpmorgan Strategic Income | Pgim Securitized vs. HUMANA INC | Pgim Securitized vs. Aquagold International | Pgim Securitized vs. Thrivent High Yield |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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