Correlation Between Dunham Emerging and Dunham International
Can any of the company-specific risk be diversified away by investing in both Dunham Emerging and Dunham International 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 Emerging and Dunham International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Emerging Markets and Dunham International Opportunity, you can compare the effects of market volatilities on Dunham Emerging and Dunham International 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 Emerging with a short position of Dunham International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Emerging and Dunham International.
Diversification Opportunities for Dunham Emerging and Dunham International
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dunham and Dunham is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Emerging Markets and Dunham International Opportuni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham International and Dunham Emerging 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 Emerging Markets are associated (or correlated) with Dunham International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham International has no effect on the direction of Dunham Emerging i.e., Dunham Emerging and Dunham International go up and down completely randomly.
Pair Corralation between Dunham Emerging and Dunham International
Assuming the 90 days horizon Dunham Emerging Markets is expected to generate 3.87 times more return on investment than Dunham International. However, Dunham Emerging is 3.87 times more volatile than Dunham International Opportunity. It trades about 0.04 of its potential returns per unit of risk. Dunham International Opportunity is currently generating about 0.14 per unit of risk. If you would invest 1,195 in Dunham Emerging Markets on November 29, 2024 and sell it today you would earn a total of 194.00 from holding Dunham Emerging Markets or generate 16.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Emerging Markets vs. Dunham International Opportuni
Performance |
| Timeline |
| Dunham Emerging Markets |
| Dunham International |
Dunham Emerging and Dunham International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Emerging and Dunham International
The main advantage of trading using opposite Dunham Emerging and Dunham International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Emerging position performs unexpectedly, Dunham International 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 Dunham International will offset losses from the drop in Dunham International's long position.| Dunham Emerging vs. Putnam Global Health | Dunham Emerging vs. Tekla Healthcare Investors | Dunham Emerging vs. Health Care Ultrasector | Dunham Emerging vs. John Hancock Variable |
| Dunham International vs. Versatile Bond Portfolio | Dunham International vs. T Rowe Price | Dunham International vs. Buffalo High Yield | Dunham International vs. Massmutual Premier E |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |