Correlation Between Dunham Real and Federated Mortgage
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Federated Mortgage 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 Federated Mortgage 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 Federated Mortgage Fund, you can compare the effects of market volatilities on Dunham Real and Federated Mortgage 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 Federated Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Federated Mortgage.
Diversification Opportunities for Dunham Real and Federated Mortgage
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dunham and Federated is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Federated Mortgage Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Mortgage 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 Federated Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Mortgage has no effect on the direction of Dunham Real i.e., Dunham Real and Federated Mortgage go up and down completely randomly.
Pair Corralation between Dunham Real and Federated Mortgage
Assuming the 90 days horizon Dunham Real Estate is expected to generate 2.51 times more return on investment than Federated Mortgage. However, Dunham Real is 2.51 times more volatile than Federated Mortgage Fund. It trades about 0.21 of its potential returns per unit of risk. Federated Mortgage Fund is currently generating about 0.23 per unit of risk. If you would invest 1,459 in Dunham Real Estate on September 13, 2024 and sell it today you would earn a total of 41.00 from holding Dunham Real Estate or generate 2.81% 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. Federated Mortgage Fund
Performance |
| Timeline |
| Dunham Real Estate |
| Federated Mortgage |
Dunham Real and Federated Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Federated Mortgage
The main advantage of trading using opposite Dunham Real and Federated Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Federated Mortgage 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 Federated Mortgage will offset losses from the drop in Federated Mortgage'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 |
| Federated Mortgage vs. Federated Emerging Market | Federated Mortgage vs. Federated Mdt All | Federated Mortgage vs. Federated Mdt Balanced | Federated Mortgage vs. Federated Global Allocation |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |