Correlation Between Dunham Real and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Emerging, you can compare the effects of market volatilities on Dunham Real and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Goldman Sachs.
Diversification Opportunities for Dunham Real and Goldman Sachs
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dunham and Goldman is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Goldman Sachs Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Emerging 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Emerging has no effect on the direction of Dunham Real i.e., Dunham Real and Goldman Sachs go up and down completely randomly.
Pair Corralation between Dunham Real and Goldman Sachs
Assuming the 90 days horizon Dunham Real Estate is expected to generate 1.19 times more return on investment than Goldman Sachs. However, Dunham Real is 1.19 times more volatile than Goldman Sachs Emerging. It trades about 0.21 of its potential returns per unit of risk. Goldman Sachs Emerging 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. Goldman Sachs Emerging
Performance |
| Timeline |
| Dunham Real Estate |
| Goldman Sachs Emerging |
Dunham Real and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Goldman Sachs
The main advantage of trading using opposite Dunham Real and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' 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 |
| Goldman Sachs vs. Pender Real Estate | Goldman Sachs vs. Fidelity Real Estate | Goldman Sachs vs. Commonwealth Real Estate | Goldman Sachs vs. Dunham Real Estate |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |