Correlation Between Dunham Real and Gabelli Healthcare
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Gabelli Healthcare 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 Gabelli Healthcare 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 The Gabelli Healthcare, you can compare the effects of market volatilities on Dunham Real and Gabelli Healthcare 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 Gabelli Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Gabelli Healthcare.
Diversification Opportunities for Dunham Real and Gabelli Healthcare
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DUNHAM and Gabelli is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and The Gabelli Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Gabelli Healthcare 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 Gabelli Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Gabelli Healthcare has no effect on the direction of Dunham Real i.e., Dunham Real and Gabelli Healthcare go up and down completely randomly.
Pair Corralation between Dunham Real and Gabelli Healthcare
Assuming the 90 days horizon Dunham Real Estate is expected to generate 1.14 times more return on investment than Gabelli Healthcare. However, Dunham Real is 1.14 times more volatile than The Gabelli Healthcare. It trades about 0.01 of its potential returns per unit of risk. The Gabelli Healthcare is currently generating about -0.23 per unit of risk. If you would invest 1,516 in Dunham Real Estate on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Dunham Real Estate or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Real Estate vs. The Gabelli Healthcare
Performance |
| Timeline |
| Dunham Real Estate |
| The Gabelli Healthcare |
Dunham Real and Gabelli Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Gabelli Healthcare
The main advantage of trading using opposite Dunham Real and Gabelli Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Gabelli Healthcare 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 Gabelli Healthcare will offset losses from the drop in Gabelli Healthcare'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 |
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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 Stocks Directory module to find actively traded stocks across global markets.
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