Correlation Between Dunham High and Huber Capital
Can any of the company-specific risk be diversified away by investing in both Dunham High and Huber Capital 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 Huber Capital 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 Huber Capital Diversified, you can compare the effects of market volatilities on Dunham High and Huber Capital 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 Huber Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Huber Capital.
Diversification Opportunities for Dunham High and Huber Capital
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dunham and Huber is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Huber Capital Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huber Capital Diversified 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 Huber Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huber Capital Diversified has no effect on the direction of Dunham High i.e., Dunham High and Huber Capital go up and down completely randomly.
Pair Corralation between Dunham High and Huber Capital
Assuming the 90 days horizon Dunham High is expected to generate 3.21 times less return on investment than Huber Capital. But when comparing it to its historical volatility, Dunham High Yield is 6.82 times less risky than Huber Capital. It trades about 0.2 of its potential returns per unit of risk. Huber Capital Diversified is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,386 in Huber Capital Diversified on August 29, 2024 and sell it today you would earn a total of 128.00 from holding Huber Capital Diversified or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham High Yield vs. Huber Capital Diversified
Performance |
| Timeline |
| Dunham High Yield |
| Huber Capital Diversified |
Dunham High and Huber Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Huber Capital
The main advantage of trading using opposite Dunham High and Huber Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham High position performs unexpectedly, Huber Capital 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 Huber Capital will offset losses from the drop in Huber Capital's long position.| Dunham High vs. Prudential High Yield | Dunham High vs. HUMANA INC | Dunham High vs. Aquagold International | Dunham High vs. Barloworld Ltd ADR |
| Huber Capital vs. Dodge Cox Stock | Huber Capital vs. American Mutual Fund | Huber Capital vs. American Funds American | Huber Capital vs. American Funds American |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |