Correlation Between Dunham Real and Harbor International
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Harbor International 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 Harbor International 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 Harbor International Growth, you can compare the effects of market volatilities on Dunham Real and Harbor International 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 Harbor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Harbor International.
Diversification Opportunities for Dunham Real and Harbor International
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dunham and Harbor is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Harbor International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor International 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 Harbor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor International has no effect on the direction of Dunham Real i.e., Dunham Real and Harbor International go up and down completely randomly.
Pair Corralation between Dunham Real and Harbor International
Assuming the 90 days horizon Dunham Real Estate is expected to generate 1.2 times more return on investment than Harbor International. However, Dunham Real is 1.2 times more volatile than Harbor International Growth. It trades about 0.05 of its potential returns per unit of risk. Harbor International Growth is currently generating about 0.03 per unit of risk. If you would invest 1,103 in Dunham Real Estate on August 30, 2024 and sell it today you would earn a total of 277.00 from holding Dunham Real Estate or generate 25.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.69% |
| Values | Daily Returns |
Dunham Real Estate vs. Harbor International Growth
Performance |
| Timeline |
| Dunham Real Estate |
| Harbor International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Dunham Real and Harbor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Harbor International
The main advantage of trading using opposite Dunham Real and Harbor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Harbor International 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 Harbor International will offset losses from the drop in Harbor International's long position.| Dunham Real vs. Tax Managed Large Cap | Dunham Real vs. T Rowe Price | Dunham Real vs. Old Westbury Large | Dunham Real vs. Pace Large Value |
| Harbor International vs. T Rowe Price | Harbor International vs. Vanguard Emerging Markets | Harbor International vs. Artisan Emerging Markets | Harbor International vs. Blrc Sgy Mnp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |