Correlation Between Dunham Large and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Dunham Large and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on Dunham Large and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Large and Strategic Asset.
Diversification Opportunities for Dunham Large and Strategic Asset
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dunham and Strategic is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Large Cap and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Dunham Large i.e., Dunham Large and Strategic Asset go up and down completely randomly.
Pair Corralation between Dunham Large and Strategic Asset
Assuming the 90 days horizon Dunham Large Cap is expected to generate 2.54 times more return on investment than Strategic Asset. However, Dunham Large is 2.54 times more volatile than Strategic Asset Management. It trades about 0.36 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.32 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 | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dunham Large Cap vs. Strategic Asset Management
Performance |
| Timeline |
| Dunham Large Cap |
| Strategic Asset Mana |
Dunham Large and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Large and Strategic Asset
The main advantage of trading using opposite Dunham Large and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Large position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset'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 |
| Strategic Asset vs. Jhancock Disciplined Value | Strategic Asset vs. Dunham Large Cap | Strategic Asset vs. Fidelity Series 1000 | Strategic Asset vs. Aqr 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |