Correlation Between Dunham Real and Pimco Extended
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Pimco Extended 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 Pimco Extended 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 Pimco Extended Duration, you can compare the effects of market volatilities on Dunham Real and Pimco Extended 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 Pimco Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Pimco Extended.
Diversification Opportunities for Dunham Real and Pimco Extended
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and Pimco is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Pimco Extended Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Extended Duration 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 Pimco Extended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Extended Duration has no effect on the direction of Dunham Real i.e., Dunham Real and Pimco Extended go up and down completely randomly.
Pair Corralation between Dunham Real and Pimco Extended
Assuming the 90 days horizon Dunham Real Estate is expected to generate 0.82 times more return on investment than Pimco Extended. However, Dunham Real Estate is 1.22 times less risky than Pimco Extended. It trades about 0.08 of its potential returns per unit of risk. Pimco Extended Duration is currently generating about 0.01 per unit of risk. If you would invest 1,198 in Dunham Real Estate on September 15, 2024 and sell it today you would earn a total of 283.00 from holding Dunham Real Estate or generate 23.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Real Estate vs. Pimco Extended Duration
Performance |
| Timeline |
| Dunham Real Estate |
| Pimco Extended Duration |
Dunham Real and Pimco Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Pimco Extended
The main advantage of trading using opposite Dunham Real and Pimco Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Pimco Extended 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 Pimco Extended will offset losses from the drop in Pimco Extended'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 |
| Pimco Extended vs. Pender Real Estate | Pimco Extended vs. Neuberger Berman Real | Pimco Extended vs. Jhancock Real Estate | Pimco Extended 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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