Correlation Between Dunham Real and Franklin International
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Franklin 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 Real and Franklin International 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 Franklin International Small, you can compare the effects of market volatilities on Dunham Real and Franklin 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 Real with a short position of Franklin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Franklin International.
Diversification Opportunities for Dunham Real and Franklin International
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dunham and Franklin is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Franklin International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin International 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 Franklin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin International has no effect on the direction of Dunham Real i.e., Dunham Real and Franklin International go up and down completely randomly.
Pair Corralation between Dunham Real and Franklin International
Assuming the 90 days horizon Dunham Real is expected to generate 3.75 times less return on investment than Franklin International. In addition to that, Dunham Real is 1.09 times more volatile than Franklin International Small. It trades about 0.05 of its total potential returns per unit of risk. Franklin International Small is currently generating about 0.19 per unit of volatility. If you would invest 1,231 in Franklin International Small on September 14, 2024 and sell it today you would earn a total of 124.00 from holding Franklin International Small or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 9.51% |
| Values | Daily Returns |
Dunham Real Estate vs. Franklin International Small
Performance |
| Timeline |
| Dunham Real Estate |
| Franklin International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dunham Real and Franklin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Franklin International
The main advantage of trading using opposite Dunham Real and Franklin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Franklin 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 Franklin International will offset losses from the drop in Franklin International's long position.| Dunham Real vs. Realty Income | Dunham Real vs. Dynex Capital | Dunham Real vs. First Industrial Realty | Dunham Real vs. Healthcare Realty Trust |
| Franklin International vs. Global Gold Fund | Franklin International vs. Goldman Sachs Clean | Franklin International vs. Europac Gold Fund | Franklin International vs. Invesco Gold Special |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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