Correlation Between Dunham High and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Dunham High and Emerging Markets 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 Emerging Markets 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 Emerging Markets Series, you can compare the effects of market volatilities on Dunham High and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Emerging Markets.
Diversification Opportunities for Dunham High and Emerging Markets
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dunham and Emerging is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Emerging Markets Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Series 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Series has no effect on the direction of Dunham High i.e., Dunham High and Emerging Markets go up and down completely randomly.
Pair Corralation between Dunham High and Emerging Markets
If you would invest 820.00 in Dunham High Yield on September 12, 2024 and sell it today you would earn a total of 70.00 from holding Dunham High Yield or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Dunham High Yield vs. Emerging Markets Series
Performance |
| Timeline |
| Dunham High Yield |
| Emerging Markets Series |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dunham High and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Emerging Markets
The main advantage of trading using opposite Dunham High and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham High position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Dunham High vs. Calvert Global Energy | Dunham High vs. Gmo Resources | Dunham High vs. Tortoise Energy Independence | Dunham High vs. Gamco Natural Resources |
| Emerging Markets vs. Barings Emerging Markets | Emerging Markets vs. Black Oak Emerging | Emerging Markets vs. Siit Emerging Markets | Emerging Markets vs. Franklin Emerging Market |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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