Correlation Between Dunham Real and Centre American
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Centre American 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 Centre American 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 Centre American Select, you can compare the effects of market volatilities on Dunham Real and Centre American 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 Centre American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Centre American.
Diversification Opportunities for Dunham Real and Centre American
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and Centre is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Centre American Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centre American Select 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 Centre American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centre American Select has no effect on the direction of Dunham Real i.e., Dunham Real and Centre American go up and down completely randomly.
Pair Corralation between Dunham Real and Centre American
Assuming the 90 days horizon Dunham Real Estate is expected to under-perform the Centre American. In addition to that, Dunham Real is 1.65 times more volatile than Centre American Select. It trades about -0.02 of its total potential returns per unit of risk. Centre American Select is currently generating about 0.04 per unit of volatility. If you would invest 1,819 in Centre American Select on September 13, 2024 and sell it today you would earn a total of 17.00 from holding Centre American Select or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Dunham Real Estate vs. Centre American Select
Performance |
| Timeline |
| Dunham Real Estate |
| Centre American Select |
Dunham Real and Centre American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Centre American
The main advantage of trading using opposite Dunham Real and Centre American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Centre American 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 Centre American will offset losses from the drop in Centre American's long position.| Dunham Real vs. Falcon Focus Scv | Dunham Real vs. Materials Portfolio Fidelity | Dunham Real vs. Scharf Global Opportunity | Dunham Real vs. Red Oak Technology |
| Centre American vs. Origin Emerging Markets | Centre American vs. Transamerica Emerging Markets | Centre American vs. Barings Emerging Markets | Centre American vs. Siit Emerging Markets |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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