Correlation Between Dunham Large and Lkcm International
Can any of the company-specific risk be diversified away by investing in both Dunham Large and Lkcm 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 Lkcm 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 Lkcm International Equity, you can compare the effects of market volatilities on Dunham Large and Lkcm 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 Lkcm International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Large and Lkcm International.
Diversification Opportunities for Dunham Large and Lkcm International
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dunham and Lkcm is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Large Cap and Lkcm International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm International Equity 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 Lkcm International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm International Equity has no effect on the direction of Dunham Large i.e., Dunham Large and Lkcm International go up and down completely randomly.
Pair Corralation between Dunham Large and Lkcm International
Assuming the 90 days horizon Dunham Large Cap is expected to under-perform the Lkcm International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dunham Large Cap is 1.25 times less risky than Lkcm International. The mutual fund trades about -0.16 of its potential returns per unit of risk. The Lkcm International Equity is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,359 in Lkcm International Equity on September 13, 2024 and sell it today you would earn a total of 24.00 from holding Lkcm International Equity or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Large Cap vs. Lkcm International Equity
Performance |
| Timeline |
| Dunham Large Cap |
| Lkcm International Equity |
Dunham Large and Lkcm International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Large and Lkcm International
The main advantage of trading using opposite Dunham Large and Lkcm International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Large position performs unexpectedly, Lkcm 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 Lkcm International will offset losses from the drop in Lkcm International'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 |
| Lkcm International vs. Lkcm Balanced Fund | Lkcm International vs. Lkcm Equity Fund | Lkcm International vs. Lkcm Fixed Income | Lkcm International vs. Lkcm Small Cap |
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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