Correlation Between Dunham Large and American Beacon
Can any of the company-specific risk be diversified away by investing in both Dunham Large and American Beacon 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 American Beacon 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 American Beacon Glg, you can compare the effects of market volatilities on Dunham Large and American Beacon 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 American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Large and American Beacon.
Diversification Opportunities for Dunham Large and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dunham and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Large Cap and American Beacon Glg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Glg 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 American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Glg has no effect on the direction of Dunham Large i.e., Dunham Large and American Beacon go up and down completely randomly.
Pair Corralation between Dunham Large and American Beacon
If you would invest 1,587 in Dunham Large Cap on September 13, 2024 and sell it today you would earn a total of 489.00 from holding Dunham Large Cap or generate 30.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Dunham Large Cap vs. American Beacon Glg
Performance |
| Timeline |
| Dunham Large Cap |
| American Beacon Glg |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dunham Large and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Large and American Beacon
The main advantage of trading using opposite Dunham Large and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Large position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Dunham Large vs. Counterpoint Tactical Municipal | Dunham Large vs. T Rowe Price | Dunham Large vs. Blrc Sgy Mnp | Dunham Large vs. Bbh Intermediate Municipal |
| American Beacon vs. Great West Goldman Sachs | American Beacon vs. James Balanced Golden | American Beacon vs. Invesco Gold Special | American Beacon vs. Goldman Sachs Clean |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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