Correlation Between Dunham Real and Mainstay Unconstrained
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Mainstay Unconstrained 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 Mainstay Unconstrained 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 Mainstay Unconstrained Bond, you can compare the effects of market volatilities on Dunham Real and Mainstay Unconstrained 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 Mainstay Unconstrained. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Mainstay Unconstrained.
Diversification Opportunities for Dunham Real and Mainstay Unconstrained
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dunham and Mainstay is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Mainstay Unconstrained Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Unconstrained 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 Mainstay Unconstrained. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Unconstrained has no effect on the direction of Dunham Real i.e., Dunham Real and Mainstay Unconstrained go up and down completely randomly.
Pair Corralation between Dunham Real and Mainstay Unconstrained
Assuming the 90 days horizon Dunham Real Estate is expected to generate 3.93 times more return on investment than Mainstay Unconstrained. However, Dunham Real is 3.93 times more volatile than Mainstay Unconstrained Bond. It trades about 0.05 of its potential returns per unit of risk. Mainstay Unconstrained Bond is currently generating about 0.11 per unit of risk. If you would invest 1,486 in Dunham Real Estate on September 12, 2024 and sell it today you would earn a total of 11.00 from holding Dunham Real Estate or generate 0.74% 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. Mainstay Unconstrained Bond
Performance |
| Timeline |
| Dunham Real Estate |
| Mainstay Unconstrained |
Dunham Real and Mainstay Unconstrained Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Mainstay Unconstrained
The main advantage of trading using opposite Dunham Real and Mainstay Unconstrained positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Mainstay Unconstrained 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 Mainstay Unconstrained will offset losses from the drop in Mainstay Unconstrained's long position.| Dunham Real vs. Oppenheimer Gold Special | Dunham Real vs. Gabelli Gold Fund | Dunham Real vs. Goldman Sachs Clean | Dunham Real vs. Vy Goldman Sachs |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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