Correlation Between Dunham Real and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Fidelity Freedom 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 Freedom 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 Freedom Blend, you can compare the effects of market volatilities on Dunham Real and Fidelity Freedom 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 Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Fidelity Freedom.
Diversification Opportunities for Dunham Real and Fidelity Freedom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dunham and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Fidelity Freedom Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom Blend 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 Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom Blend has no effect on the direction of Dunham Real i.e., Dunham Real and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Dunham Real and Fidelity Freedom
Assuming the 90 days horizon Dunham Real Estate is expected to generate 4.11 times more return on investment than Fidelity Freedom. However, Dunham Real is 4.11 times more volatile than Fidelity Freedom Blend. It trades about 0.06 of its potential returns per unit of risk. Fidelity Freedom Blend is currently generating about 0.07 per unit of risk. If you would invest 1,318 in Dunham Real Estate on September 12, 2024 and sell it today you would earn a total of 182.00 from holding Dunham Real Estate or generate 13.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Dunham Real Estate vs. Fidelity Freedom Blend
Performance |
| Timeline |
| Dunham Real Estate |
| Fidelity Freedom Blend |
Dunham Real and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Fidelity Freedom
The main advantage of trading using opposite Dunham Real and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Fidelity Freedom 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 Freedom will offset losses from the drop in Fidelity Freedom'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 |
| Fidelity Freedom vs. Lord Abbett Affiliated | Fidelity Freedom vs. Americafirst Large Cap | Fidelity Freedom vs. M Large Cap | Fidelity Freedom vs. Dana Large Cap |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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