Correlation Between Dunham Large and Calvert International
Can any of the company-specific risk be diversified away by investing in both Dunham Large and Calvert International 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 Large and Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Large Cap and Calvert International Equity, you can compare the effects of market volatilities on Dunham Large and Calvert International 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 Large with a short position of Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Large and Calvert International.
Diversification Opportunities for Dunham Large and Calvert International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dunham and Calvert is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Large Cap and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International and Dunham Large 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 Large Cap are associated (or correlated) with Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Dunham Large i.e., Dunham Large and Calvert International go up and down completely randomly.
Pair Corralation between Dunham Large and Calvert International
Assuming the 90 days horizon Dunham Large Cap is expected to generate 0.75 times more return on investment than Calvert International. However, Dunham Large Cap is 1.33 times less risky than Calvert International. It trades about 0.15 of its potential returns per unit of risk. Calvert International Equity is currently generating about -0.02 per unit of risk. If you would invest 1,886 in Dunham Large Cap on August 29, 2024 and sell it today you would earn a total of 246.00 from holding Dunham Large Cap or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Large Cap vs. Calvert International Equity
Performance |
| Timeline |
| Dunham Large Cap |
| Calvert International |
Dunham Large and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Large and Calvert International
The main advantage of trading using opposite Dunham Large and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Large position performs unexpectedly, Calvert International 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 Calvert International will offset losses from the drop in Calvert International's long position.| Dunham Large vs. Dodge Cox Stock | Dunham Large vs. American Mutual Fund | Dunham Large vs. American Funds American | Dunham Large vs. American Funds American |
| Calvert International vs. Virtus Nfj Large Cap | Calvert International vs. Qs Large Cap | Calvert International vs. Dunham Large Cap | Calvert International vs. Vanguard Equity Income |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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