Correlation Between Dunham Real and Ab Global
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Ab Global 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 Real and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Real Estate and Ab Global Bond, you can compare the effects of market volatilities on Dunham Real and Ab Global 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 Real with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Ab Global.
Diversification Opportunities for Dunham Real and Ab Global
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and ANAGX is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond and Dunham Real 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 Real Estate are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of Dunham Real i.e., Dunham Real and Ab Global go up and down completely randomly.
Pair Corralation between Dunham Real and Ab Global
Assuming the 90 days horizon Dunham Real Estate is expected to generate 4.39 times more return on investment than Ab Global. However, Dunham Real is 4.39 times more volatile than Ab Global Bond. It trades about 0.09 of its potential returns per unit of risk. Ab Global Bond is currently generating about 0.13 per unit of risk. If you would invest 1,052 in Dunham Real Estate on September 19, 2024 and sell it today you would earn a total of 345.00 from holding Dunham Real Estate or generate 32.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Real Estate vs. Ab Global Bond
Performance |
| Timeline |
| Dunham Real Estate |
| Ab Global Bond |
Dunham Real and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Ab Global
The main advantage of trading using opposite Dunham Real and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Dunham Real vs. Western Asset Diversified | Dunham Real vs. Investec Emerging Markets | Dunham Real vs. Barings Emerging Markets | Dunham Real vs. Artisan Emerging Markets |
| Ab Global vs. Dunham Real Estate | Ab Global vs. Nuveen Real Estate | Ab Global vs. Commonwealth Real Estate | Ab Global vs. Sa Real Estate |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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