Correlation Between Dunham High and Tiaa-cref High-yield
Can any of the company-specific risk be diversified away by investing in both Dunham High and Tiaa-cref High-yield 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 Tiaa-cref High-yield 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 Tiaa Cref High Yield Fund, you can compare the effects of market volatilities on Dunham High and Tiaa-cref High-yield 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 Tiaa-cref High-yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Tiaa-cref High-yield.
Diversification Opportunities for Dunham High and Tiaa-cref High-yield
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dunham and Tiaa-cref is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Tiaa Cref High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref 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 Tiaa-cref High-yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa-cref High-yield has no effect on the direction of Dunham High i.e., Dunham High and Tiaa-cref High-yield go up and down completely randomly.
Pair Corralation between Dunham High and Tiaa-cref High-yield
Assuming the 90 days horizon Dunham High Yield is expected to generate 0.97 times more return on investment than Tiaa-cref High-yield. However, Dunham High Yield is 1.03 times less risky than Tiaa-cref High-yield. It trades about 0.39 of its potential returns per unit of risk. Tiaa Cref High Yield Fund is currently generating about 0.25 per unit of risk. If you would invest 877.00 in Dunham High Yield on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Dunham High Yield or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dunham High Yield vs. Tiaa Cref High Yield Fund
Performance |
| Timeline |
| Dunham High Yield |
| Tiaa-cref High-yield |
Dunham High and Tiaa-cref High-yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Tiaa-cref High-yield
The main advantage of trading using opposite Dunham High and Tiaa-cref High-yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham High position performs unexpectedly, Tiaa-cref High-yield 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 Tiaa-cref High-yield will offset losses from the drop in Tiaa-cref High-yield's long position.| Dunham High vs. Dunham Dynamic Macro | Dunham High vs. Dunham Porategovernment Bond | Dunham High vs. Dunham Small Cap | Dunham High vs. Dunham Emerging Markets |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |