Correlation Between Dunham Real and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Simt Multi-asset 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 Simt Multi-asset 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 Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Dunham Real and Simt Multi-asset 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 Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Simt Multi-asset.
Diversification Opportunities for Dunham Real and Simt Multi-asset
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dunham and Simt is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Dunham Real i.e., Dunham Real and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Dunham Real and Simt Multi-asset
Assuming the 90 days horizon Dunham Real Estate is expected to generate 1.88 times more return on investment than Simt Multi-asset. However, Dunham Real is 1.88 times more volatile than Simt Multi Asset Accumulation. It trades about 0.26 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.28 per unit of risk. If you would invest 1,470 in Dunham Real Estate on September 1, 2024 and sell it today you would earn a total of 66.00 from holding Dunham Real Estate or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dunham Real Estate vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Dunham Real Estate |
| Simt Multi Asset |
Dunham Real and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Simt Multi-asset
The main advantage of trading using opposite Dunham Real and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset'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 |
| Simt Multi-asset vs. Dunham Real Estate | Simt Multi-asset vs. Amg Managers Centersquare | Simt Multi-asset vs. Deutsche Real Estate | Simt Multi-asset vs. Great West 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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