Correlation Between Dunham Real and Teton Westwood

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Teton Westwood 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 Teton Westwood 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 Teton Westwood Balanced, you can compare the effects of market volatilities on Dunham Real and Teton Westwood 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 Teton Westwood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Teton Westwood.

Diversification Opportunities for Dunham Real and Teton Westwood

-0.12
  Correlation Coefficient

Good diversification

The 3 months correlation between Dunham and Teton is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Teton Westwood Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Westwood Balanced 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 Teton Westwood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Westwood Balanced has no effect on the direction of Dunham Real i.e., Dunham Real and Teton Westwood go up and down completely randomly.

Pair Corralation between Dunham Real and Teton Westwood

Assuming the 90 days horizon Dunham Real Estate is expected to generate 0.59 times more return on investment than Teton Westwood. However, Dunham Real Estate is 1.7 times less risky than Teton Westwood. It trades about 0.06 of its potential returns per unit of risk. Teton Westwood Balanced is currently generating about -0.23 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  14.00  from holding Dunham Real Estate or generate 0.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Dunham Real Estate  vs.  Teton Westwood Balanced

 Performance 
       Timeline  
Dunham Real Estate 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Dunham Real Estate are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Dunham Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Teton Westwood Balanced 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Teton Westwood Balanced has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Teton Westwood is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dunham Real and Teton Westwood Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dunham Real and Teton Westwood

The main advantage of trading using opposite Dunham Real and Teton Westwood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Teton Westwood 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 Teton Westwood will offset losses from the drop in Teton Westwood's long position.
The idea behind Dunham Real Estate and Teton Westwood Balanced pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital