Correlation Between Dunham Emerging and Fidelity Small
Can any of the company-specific risk be diversified away by investing in both Dunham Emerging and Fidelity Small 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 Emerging and Fidelity Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Emerging Markets and Fidelity Small Cap, you can compare the effects of market volatilities on Dunham Emerging and Fidelity Small 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 Emerging with a short position of Fidelity Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Emerging and Fidelity Small.
Diversification Opportunities for Dunham Emerging and Fidelity Small
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dunham and Fidelity is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Emerging Markets and Fidelity Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Small Cap and Dunham Emerging 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 Emerging Markets are associated (or correlated) with Fidelity Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Small Cap has no effect on the direction of Dunham Emerging i.e., Dunham Emerging and Fidelity Small go up and down completely randomly.
Pair Corralation between Dunham Emerging and Fidelity Small
Assuming the 90 days horizon Dunham Emerging Markets is expected to generate 0.78 times more return on investment than Fidelity Small. However, Dunham Emerging Markets is 1.29 times less risky than Fidelity Small. It trades about 0.15 of its potential returns per unit of risk. Fidelity Small Cap is currently generating about 0.0 per unit of risk. If you would invest 1,244 in Dunham Emerging Markets on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Dunham Emerging Markets or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dunham Emerging Markets vs. Fidelity Small Cap
Performance |
| Timeline |
| Dunham Emerging Markets |
| Fidelity Small Cap |
Dunham Emerging and Fidelity Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Emerging and Fidelity Small
The main advantage of trading using opposite Dunham Emerging and Fidelity Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Emerging position performs unexpectedly, Fidelity Small 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 Fidelity Small will offset losses from the drop in Fidelity Small's long position.| Dunham Emerging vs. Dunham Dynamic Macro | Dunham Emerging vs. Dunham Appreciation Income | Dunham Emerging vs. Dunham Porategovernment Bond | Dunham Emerging vs. Dunham Small Cap |
| Fidelity Small vs. Fidelity Large Cap | Fidelity Small vs. Fidelity Small Cap | Fidelity Small vs. Fidelity Mid Cap | Fidelity Small vs. Fidelity Mid Cap |
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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