Correlation Between Dunham Real and Wcm Focused
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Wcm Focused 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 Wcm Focused 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 Wcm Focused Global, you can compare the effects of market volatilities on Dunham Real and Wcm Focused 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 Wcm Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Wcm Focused.
Diversification Opportunities for Dunham Real and Wcm Focused
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dunham and Wcm is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Wcm Focused Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wcm Focused Global 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 Wcm Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wcm Focused Global has no effect on the direction of Dunham Real i.e., Dunham Real and Wcm Focused go up and down completely randomly.
Pair Corralation between Dunham Real and Wcm Focused
Assuming the 90 days horizon Dunham Real is expected to generate 2.05 times less return on investment than Wcm Focused. In addition to that, Dunham Real is 1.32 times more volatile than Wcm Focused Global. It trades about 0.05 of its total potential returns per unit of risk. Wcm Focused Global is currently generating about 0.12 per unit of volatility. If you would invest 1,721 in Wcm Focused Global on September 14, 2024 and sell it today you would earn a total of 1,257 from holding Wcm Focused Global or generate 73.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Dunham Real Estate vs. Wcm Focused Global
Performance |
| Timeline |
| Dunham Real Estate |
| Wcm Focused Global |
Dunham Real and Wcm Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Wcm Focused
The main advantage of trading using opposite Dunham Real and Wcm Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Wcm Focused 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 Wcm Focused will offset losses from the drop in Wcm Focused'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 |
| Wcm Focused vs. Dunham Real Estate | Wcm Focused vs. Nexpoint Real Estate | Wcm Focused vs. Amg Managers Centersquare | Wcm Focused vs. Franklin 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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