Correlation Between Dunham Large and Gateway Fund
Can any of the company-specific risk be diversified away by investing in both Dunham Large and Gateway Fund 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 Large and Gateway Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Large Cap and Gateway Fund Class, you can compare the effects of market volatilities on Dunham Large and Gateway Fund 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 Large with a short position of Gateway Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Large and Gateway Fund.
Diversification Opportunities for Dunham Large and Gateway Fund
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dunham and Gateway is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Large Cap and Gateway Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Fund Class and Dunham Large 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 Large Cap are associated (or correlated) with Gateway Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Fund Class has no effect on the direction of Dunham Large i.e., Dunham Large and Gateway Fund go up and down completely randomly.
Pair Corralation between Dunham Large and Gateway Fund
Assuming the 90 days horizon Dunham Large Cap is expected to generate 1.56 times more return on investment than Gateway Fund. However, Dunham Large is 1.56 times more volatile than Gateway Fund Class. It trades about 0.36 of its potential returns per unit of risk. Gateway Fund Class is currently generating about 0.37 per unit of risk. If you would invest 1,881 in Dunham Large Cap on September 1, 2024 and sell it today you would earn a total of 102.00 from holding Dunham Large Cap or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dunham Large Cap vs. Gateway Fund Class
Performance |
| Timeline |
| Dunham Large Cap |
| Gateway Fund Class |
Dunham Large and Gateway Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Large and Gateway Fund
The main advantage of trading using opposite Dunham Large and Gateway Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Large position performs unexpectedly, Gateway Fund 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 Gateway Fund will offset losses from the drop in Gateway Fund's long position.| Dunham Large vs. Dunham Dynamic Macro | Dunham Large vs. Dunham Appreciation Income | Dunham Large vs. Dunham Small Cap | Dunham Large vs. Dunham Emerging Markets |
| Gateway Fund vs. Dunham Large Cap | Gateway Fund vs. T Rowe Price | Gateway Fund vs. M Large Cap | Gateway Fund vs. Tax Managed Large 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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