Correlation Between Dunham Real and Aberdeen Gbl
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Aberdeen Gbl 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 Aberdeen Gbl 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 Aberdeen Gbl Small, you can compare the effects of market volatilities on Dunham Real and Aberdeen Gbl 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 Aberdeen Gbl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Aberdeen Gbl.
Diversification Opportunities for Dunham Real and Aberdeen Gbl
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and Aberdeen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Aberdeen Gbl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Gbl Small 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 Aberdeen Gbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Gbl Small has no effect on the direction of Dunham Real i.e., Dunham Real and Aberdeen Gbl go up and down completely randomly.
Pair Corralation between Dunham Real and Aberdeen Gbl
Assuming the 90 days horizon Dunham Real Estate is expected to generate 0.93 times more return on investment than Aberdeen Gbl. However, Dunham Real Estate is 1.07 times less risky than Aberdeen Gbl. It trades about 0.21 of its potential returns per unit of risk. Aberdeen Gbl Small is currently generating about 0.14 per unit of risk. If you would invest 1,459 in Dunham Real Estate on September 13, 2024 and sell it today you would earn a total of 41.00 from holding Dunham Real Estate or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dunham Real Estate vs. Aberdeen Gbl Small
Performance |
| Timeline |
| Dunham Real Estate |
| Aberdeen Gbl Small |
Dunham Real and Aberdeen Gbl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Aberdeen Gbl
The main advantage of trading using opposite Dunham Real and Aberdeen Gbl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Aberdeen Gbl 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 Aberdeen Gbl will offset losses from the drop in Aberdeen Gbl's long position.| Dunham Real vs. Falcon Focus Scv | Dunham Real vs. Materials Portfolio Fidelity | Dunham Real vs. Scharf Global Opportunity | Dunham Real vs. Red Oak Technology |
| Aberdeen Gbl vs. Fidelity Sai Convertible | Aberdeen Gbl vs. Rationalpier 88 Convertible | Aberdeen Gbl vs. Lord Abbett Convertible | Aberdeen Gbl vs. Putnam Convertible Incm Gwth |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |