Correlation Between Dunham High and Touchstone Flexible
Can any of the company-specific risk be diversified away by investing in both Dunham High and Touchstone Flexible 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 High and Touchstone Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham High Yield and Touchstone Flexible Income, you can compare the effects of market volatilities on Dunham High and Touchstone Flexible 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 High with a short position of Touchstone Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Touchstone Flexible.
Diversification Opportunities for Dunham High and Touchstone Flexible
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dunham and Touchstone is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Touchstone Flexible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Flexible and Dunham High 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 High Yield are associated (or correlated) with Touchstone Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Flexible has no effect on the direction of Dunham High i.e., Dunham High and Touchstone Flexible go up and down completely randomly.
Pair Corralation between Dunham High and Touchstone Flexible
Assuming the 90 days horizon Dunham High Yield is expected to generate 0.73 times more return on investment than Touchstone Flexible. However, Dunham High Yield is 1.38 times less risky than Touchstone Flexible. It trades about 0.34 of its potential returns per unit of risk. Touchstone Flexible Income is currently generating about -0.04 per unit of risk. If you would invest 876.00 in Dunham High Yield on August 25, 2024 and sell it today you would earn a total of 9.00 from holding Dunham High Yield or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dunham High Yield vs. Touchstone Flexible Income
Performance |
| Timeline |
| Dunham High Yield |
| Touchstone Flexible |
Dunham High and Touchstone Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Touchstone Flexible
The main advantage of trading using opposite Dunham High and Touchstone Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham High position performs unexpectedly, Touchstone Flexible 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 Touchstone Flexible will offset losses from the drop in Touchstone Flexible's long position.| Dunham High vs. Dunham Emerging Markets | Dunham High vs. Dunham Floating Rate | Dunham High vs. Dunham International Opportunity | Dunham High vs. Dunham International Stock |
| Touchstone Flexible vs. Gmo High Yield | Touchstone Flexible vs. Pia High Yield | Touchstone Flexible vs. Dunham High Yield | Touchstone Flexible vs. Pioneer 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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