Correlation Between Dunham Real and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Bny Mellon 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 Bny Mellon 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 Bny Mellon Massachusetts, you can compare the effects of market volatilities on Dunham Real and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Bny Mellon.
Diversification Opportunities for Dunham Real and Bny Mellon
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DUNHAM and Bny is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Bny Mellon Massachusetts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Massachusetts 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Massachusetts has no effect on the direction of Dunham Real i.e., Dunham Real and Bny Mellon go up and down completely randomly.
Pair Corralation between Dunham Real and Bny Mellon
Assuming the 90 days horizon Dunham Real Estate is expected to under-perform the Bny Mellon. In addition to that, Dunham Real is 3.7 times more volatile than Bny Mellon Massachusetts. It trades about -0.05 of its total potential returns per unit of risk. Bny Mellon Massachusetts is currently generating about 0.09 per unit of volatility. If you would invest 1,222 in Bny Mellon Massachusetts on August 26, 2024 and sell it today you would earn a total of 6.00 from holding Bny Mellon Massachusetts or generate 0.49% 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. Bny Mellon Massachusetts
Performance |
| Timeline |
| Dunham Real Estate |
| Bny Mellon Massachusetts |
Dunham Real and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Bny Mellon
The main advantage of trading using opposite Dunham Real and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon'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 |
| Bny Mellon vs. Virtus Real Estate | Bny Mellon vs. Prudential Real Estate | Bny Mellon vs. Deutsche Real Estate | Bny Mellon 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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