Correlation Between Dunham Real and Real Assets
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Real Assets 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 Real Assets 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 Real Assets Portfolio, you can compare the effects of market volatilities on Dunham Real and Real Assets 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 Real Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Real Assets.
Diversification Opportunities for Dunham Real and Real Assets
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dunham and Real is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Real Assets Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Assets Portfolio 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 Real Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Assets Portfolio has no effect on the direction of Dunham Real i.e., Dunham Real and Real Assets go up and down completely randomly.
Pair Corralation between Dunham Real and Real Assets
Assuming the 90 days horizon Dunham Real Estate is expected to generate 2.15 times more return on investment than Real Assets. However, Dunham Real is 2.15 times more volatile than Real Assets Portfolio. It trades about 0.13 of its potential returns per unit of risk. Real Assets Portfolio is currently generating about 0.06 per unit of risk. If you would invest 1,281 in Dunham Real Estate on September 3, 2024 and sell it today you would earn a total of 255.00 from holding Dunham Real Estate or generate 19.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Real Estate vs. Real Assets Portfolio
Performance |
| Timeline |
| Dunham Real Estate |
| Real Assets Portfolio |
Dunham Real and Real Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Real Assets
The main advantage of trading using opposite Dunham Real and Real Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Real Assets 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 Real Assets will offset losses from the drop in Real Assets' long position.| Dunham Real vs. Ep Emerging Markets | Dunham Real vs. Rbc Emerging Markets | Dunham Real vs. Transamerica Emerging Markets | Dunham Real vs. T Rowe Price |
| Real Assets vs. Jhancock Real Estate | Real Assets vs. Columbia Real Estate | Real Assets vs. Vanguard Reit Index | Real Assets 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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