Correlation Between Dunham Real and Forum Real
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Forum Real 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 Forum Real 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 Forum Real Estate, you can compare the effects of market volatilities on Dunham Real and Forum Real 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 Forum Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Forum Real.
Diversification Opportunities for Dunham Real and Forum Real
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dunham and Forum is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Forum Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forum Real Estate 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 Forum Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forum Real Estate has no effect on the direction of Dunham Real i.e., Dunham Real and Forum Real go up and down completely randomly.
Pair Corralation between Dunham Real and Forum Real
Assuming the 90 days horizon Dunham Real Estate is expected to under-perform the Forum Real. In addition to that, Dunham Real is 15.35 times more volatile than Forum Real Estate. It trades about -0.02 of its total potential returns per unit of risk. Forum Real Estate is currently generating about 0.67 per unit of volatility. If you would invest 964.00 in Forum Real Estate on November 27, 2024 and sell it today you would earn a total of 8.00 from holding Forum Real Estate or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Real Estate vs. Forum Real Estate
Performance |
| Timeline |
| Dunham Real Estate |
| Forum Real Estate |
Dunham Real and Forum Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Forum Real
The main advantage of trading using opposite Dunham Real and Forum Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Forum Real 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 Forum Real will offset losses from the drop in Forum Real's long position.| Dunham Real vs. Putnam Vertible Securities | Dunham Real vs. Invesco Vertible Securities | Dunham Real vs. Invesco Vertible Securities | Dunham Real vs. Calamos Vertible Fund |
| Forum Real vs. Transamerica Mlp Energy | Forum Real vs. Clearbridge Energy Mlp | Forum Real vs. Calvert Global Energy | Forum Real vs. Short Oil Gas |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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