Correlation Between Dunham Real and Mfs Value
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Mfs Value 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 Mfs Value 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 Mfs Value Fund, you can compare the effects of market volatilities on Dunham Real and Mfs Value 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 Mfs Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Mfs Value.
Diversification Opportunities for Dunham Real and Mfs Value
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dunham and Mfs is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Mfs Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Value Fund 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 Mfs Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Value Fund has no effect on the direction of Dunham Real i.e., Dunham Real and Mfs Value go up and down completely randomly.
Pair Corralation between Dunham Real and Mfs Value
Assuming the 90 days horizon Dunham Real Estate is expected to generate 1.72 times more return on investment than Mfs Value. However, Dunham Real is 1.72 times more volatile than Mfs Value Fund. It trades about -0.02 of its potential returns per unit of risk. Mfs Value Fund is currently generating about -0.04 per unit of risk. If you would invest 1,410 in Dunham Real Estate on November 27, 2024 and sell it today you would lose (6.00) from holding Dunham Real Estate or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dunham Real Estate vs. Mfs Value Fund
Performance |
| Timeline |
| Dunham Real Estate |
| Mfs Value Fund |
Dunham Real and Mfs Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Mfs Value
The main advantage of trading using opposite Dunham Real and Mfs Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Mfs Value 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 Mfs Value will offset losses from the drop in Mfs Value'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 |
| Mfs Value vs. Ab Bond Inflation | Mfs Value vs. Ab Bond Inflation | Mfs Value vs. Aqr Managed Futures | Mfs Value vs. Aqr Managed Futures |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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