Correlation Between Dunham Real and Swan Defined
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Swan Defined 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 Swan Defined 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 Swan Defined Risk, you can compare the effects of market volatilities on Dunham Real and Swan Defined 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 Swan Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Swan Defined.
Diversification Opportunities for Dunham Real and Swan Defined
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dunham and Swan is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Swan Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swan Defined Risk 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 Swan Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swan Defined Risk has no effect on the direction of Dunham Real i.e., Dunham Real and Swan Defined go up and down completely randomly.
Pair Corralation between Dunham Real and Swan Defined
Assuming the 90 days horizon Dunham Real Estate is expected to generate 1.38 times more return on investment than Swan Defined. However, Dunham Real is 1.38 times more volatile than Swan Defined Risk. It trades about 0.05 of its potential returns per unit of risk. Swan Defined Risk is currently generating about 0.06 per unit of risk. If you would invest 1,171 in Dunham Real Estate on September 14, 2024 and sell it today you would earn a total of 319.00 from holding Dunham Real Estate or generate 27.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Real Estate vs. Swan Defined Risk
Performance |
| Timeline |
| Dunham Real Estate |
| Swan Defined Risk |
Dunham Real and Swan Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Swan Defined
The main advantage of trading using opposite Dunham Real and Swan Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Swan Defined 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 Swan Defined will offset losses from the drop in Swan Defined'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 |
| Swan Defined vs. Dunham Real Estate | Swan Defined vs. Simt Real Estate | Swan Defined vs. Redwood Real Estate | Swan Defined vs. Neuberger Berman Real |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |