Correlation Between Dunham High and Siit High
Can any of the company-specific risk be diversified away by investing in both Dunham High and Siit High 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 Siit High 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 Siit High Yield, you can compare the effects of market volatilities on Dunham High and Siit High 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 Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Siit High.
Diversification Opportunities for Dunham High and Siit High
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dunham and Siit is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield 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 Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Dunham High i.e., Dunham High and Siit High go up and down completely randomly.
Pair Corralation between Dunham High and Siit High
Assuming the 90 days horizon Dunham High is expected to generate 1.05 times less return on investment than Siit High. But when comparing it to its historical volatility, Dunham High Yield is 1.27 times less risky than Siit High. It trades about 0.11 of its potential returns per unit of risk. Siit High Yield is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 598.00 in Siit High Yield on January 15, 2025 and sell it today you would earn a total of 90.00 from holding Siit High Yield or generate 15.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham High Yield vs. Siit High Yield
Performance |
| Timeline |
| Dunham High Yield |
| Siit High Yield |
Dunham High and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Siit High
The main advantage of trading using opposite Dunham High and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham High position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High's long position.| Dunham High vs. Inverse High Yield | Dunham High vs. John Hancock High | Dunham High vs. Access Flex High | Dunham High vs. Ab High Income |
| Siit High vs. Nuveen Short Term | Siit High vs. Fidelity Flex Servative | Siit High vs. Transamerica Short Term Bond | Siit High vs. Aamhimco Short Duration |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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