Correlation Between Dunham Real and Gateway Fund
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Gateway Fund 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 Gateway Fund 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 Gateway Fund Class, you can compare the effects of market volatilities on Dunham Real and Gateway Fund 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 Gateway Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Gateway Fund.
Diversification Opportunities for Dunham Real and Gateway Fund
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DUNHAM and GATEWAY is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Gateway Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Fund Class 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 Gateway Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Fund Class has no effect on the direction of Dunham Real i.e., Dunham Real and Gateway Fund go up and down completely randomly.
Pair Corralation between Dunham Real and Gateway Fund
Assuming the 90 days horizon Dunham Real is expected to generate 1.05 times less return on investment than Gateway Fund. In addition to that, Dunham Real is 1.86 times more volatile than Gateway Fund Class. It trades about 0.09 of its total potential returns per unit of risk. Gateway Fund Class is currently generating about 0.17 per unit of volatility. If you would invest 4,410 in Gateway Fund Class on August 28, 2024 and sell it today you would earn a total of 221.00 from holding Gateway Fund Class or generate 5.01% 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. Gateway Fund Class
Performance |
| Timeline |
| Dunham Real Estate |
| Gateway Fund Class |
Dunham Real and Gateway Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Gateway Fund
The main advantage of trading using opposite Dunham Real and Gateway Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Gateway Fund 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 Gateway Fund will offset losses from the drop in Gateway Fund'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 |
| Gateway Fund vs. Asg Managed Futures | Gateway Fund vs. Asg Managed Futures | Gateway Fund vs. Natixis Oakmark | Gateway Fund vs. Natixis Oakmark International |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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