Correlation Between Dunham Real and Franklin High
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Franklin High 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 High 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 High Yield, you can compare the effects of market volatilities on Dunham Real and Franklin High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Franklin High.
Diversification Opportunities for Dunham Real and Franklin High
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DUNHAM and Franklin is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Franklin High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin High Yield has no effect on the direction of Dunham Real i.e., Dunham Real and Franklin High go up and down completely randomly.
Pair Corralation between Dunham Real and Franklin High
Assuming the 90 days horizon Dunham Real Estate is expected to generate 4.11 times more return on investment than Franklin High. However, Dunham Real is 4.11 times more volatile than Franklin High Yield. It trades about 0.04 of its potential returns per unit of risk. Franklin High Yield is currently generating about 0.08 per unit of risk. If you would invest 1,237 in Dunham Real Estate on August 27, 2024 and sell it today you would earn a total of 263.00 from holding Dunham Real Estate or generate 21.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Real Estate vs. Franklin High Yield
Performance |
| Timeline |
| Dunham Real Estate |
| Franklin High Yield |
Dunham Real and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Franklin High
The main advantage of trading using opposite Dunham Real and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Franklin High 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 High will offset losses from the drop in Franklin High'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 High vs. Dunham Real Estate | Franklin High vs. Great West Real Estate | Franklin High vs. Amg Managers Centersquare | Franklin High 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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