Correlation Between Dunham Real and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Fidelity Advisor 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 Fidelity Advisor 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 Fidelity Advisor Gold, you can compare the effects of market volatilities on Dunham Real and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Fidelity Advisor.
Diversification Opportunities for Dunham Real and Fidelity Advisor
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dunham and Fidelity is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Fidelity Advisor Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Gold 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Gold has no effect on the direction of Dunham Real i.e., Dunham Real and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Dunham Real and Fidelity Advisor
Assuming the 90 days horizon Dunham Real is expected to generate 3.24 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Dunham Real Estate is 2.8 times less risky than Fidelity Advisor. It trades about 0.11 of its potential returns per unit of risk. Fidelity Advisor Gold is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,568 in Fidelity Advisor Gold on September 15, 2024 and sell it today you would earn a total of 122.00 from holding Fidelity Advisor Gold or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Real Estate vs. Fidelity Advisor Gold
Performance |
| Timeline |
| Dunham Real Estate |
| Fidelity Advisor Gold |
Dunham Real and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Fidelity Advisor
The main advantage of trading using opposite Dunham Real and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor'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 |
| Fidelity Advisor vs. Dunham Real Estate | Fidelity Advisor vs. Pender Real Estate | Fidelity Advisor vs. Nexpoint Real Estate | Fidelity Advisor vs. Neuberger Berman Real |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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