Correlation Between Dunham Real and Us Real
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Us Real 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 Us Real 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 Us Real Estate, you can compare the effects of market volatilities on Dunham Real and Us Real 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 Us Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Us Real.
Diversification Opportunities for Dunham Real and Us Real
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dunham and MSULX is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Us Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Real Estate 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 Us Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Real Estate has no effect on the direction of Dunham Real i.e., Dunham Real and Us Real go up and down completely randomly.
Pair Corralation between Dunham Real and Us Real
Assuming the 90 days horizon Dunham Real Estate is expected to generate 1.19 times more return on investment than Us Real. However, Dunham Real is 1.19 times more volatile than Us Real Estate. It trades about 0.1 of its potential returns per unit of risk. Us Real Estate is currently generating about 0.11 per unit of risk. If you would invest 1,146 in Dunham Real Estate on September 1, 2024 and sell it today you would earn a total of 390.00 from holding Dunham Real Estate or generate 34.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.88% |
| Values | Daily Returns |
Dunham Real Estate vs. Us Real Estate
Performance |
| Timeline |
| Dunham Real Estate |
| Us Real Estate |
Dunham Real and Us Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Us Real
The main advantage of trading using opposite Dunham Real and Us Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Us Real 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 Us Real will offset losses from the drop in Us Real's long position.| Dunham Real vs. Growth Opportunities Fund | Dunham Real vs. Nasdaq 100 Index Fund | Dunham Real vs. Eic Value Fund | Dunham Real vs. Auer Growth Fund |
| Us Real vs. Realty Income | Us Real vs. Dynex Capital | Us Real vs. First Industrial Realty | Us Real vs. Healthcare Realty Trust |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |