Correlation Between Dunham Real and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Credit Suisse 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 Credit Suisse 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 Credit Suisse Multialternative, you can compare the effects of market volatilities on Dunham Real and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Credit Suisse.
Diversification Opportunities for Dunham Real and Credit Suisse
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and Credit is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Multia has no effect on the direction of Dunham Real i.e., Dunham Real and Credit Suisse go up and down completely randomly.
Pair Corralation between Dunham Real and Credit Suisse
Assuming the 90 days horizon Dunham Real Estate is expected to generate 1.42 times more return on investment than Credit Suisse. However, Dunham Real is 1.42 times more volatile than Credit Suisse Multialternative. It trades about 0.06 of its potential returns per unit of risk. Credit Suisse Multialternative is currently generating about 0.07 per unit of risk. If you would invest 1,231 in Dunham Real Estate on August 29, 2024 and sell it today you would earn a total of 302.00 from holding Dunham Real Estate or generate 24.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.83% |
| Values | Daily Returns |
Dunham Real Estate vs. Credit Suisse Multialternative
Performance |
| Timeline |
| Dunham Real Estate |
| Credit Suisse Multia |
Dunham Real and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Credit Suisse
The main advantage of trading using opposite Dunham Real and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Dunham Real vs. Franklin Natural Resources | Dunham Real vs. HUMANA INC | Dunham Real vs. Aquagold International | Dunham Real vs. Barloworld Ltd ADR |
| Credit Suisse vs. Heitman Real Estate | Credit Suisse vs. Us Real Estate | Credit Suisse vs. Dunham Real Estate | Credit Suisse vs. Redwood 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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