Correlation Between Dunham Real and Franklin Convertible
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Franklin Convertible 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 Franklin Convertible 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 Franklin Vertible Securities, you can compare the effects of market volatilities on Dunham Real and Franklin Convertible 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 Franklin Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Franklin Convertible.
Diversification Opportunities for Dunham Real and Franklin Convertible
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dunham and Franklin is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Franklin Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Convertible 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 Franklin Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Convertible has no effect on the direction of Dunham Real i.e., Dunham Real and Franklin Convertible go up and down completely randomly.
Pair Corralation between Dunham Real and Franklin Convertible
Assuming the 90 days horizon Dunham Real is expected to generate 12.29 times less return on investment than Franklin Convertible. In addition to that, Dunham Real is 1.71 times more volatile than Franklin Vertible Securities. It trades about 0.02 of its total potential returns per unit of risk. Franklin Vertible Securities is currently generating about 0.52 per unit of volatility. If you would invest 2,235 in Franklin Vertible Securities on August 29, 2024 and sell it today you would earn a total of 152.00 from holding Franklin Vertible Securities or generate 6.8% 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. Franklin Vertible Securities
Performance |
| Timeline |
| Dunham Real Estate |
| Franklin Convertible |
Dunham Real and Franklin Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Franklin Convertible
The main advantage of trading using opposite Dunham Real and Franklin Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Franklin Convertible 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 Franklin Convertible will offset losses from the drop in Franklin Convertible's long position.| Dunham Real vs. Rbc Global Equity | Dunham Real vs. Balanced Fund Retail | Dunham Real vs. Us Vector Equity | Dunham Real vs. Ultra Short Term Fixed |
| Franklin Convertible vs. Virtus Real Estate | Franklin Convertible vs. Franklin Real Estate | Franklin Convertible vs. Deutsche Real Estate | Franklin Convertible vs. Dunham Real Estate |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges |