Correlation Between Dunham Real and Oppenheimer Senior
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Oppenheimer Senior 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 Oppenheimer Senior 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 Oppenheimer Senior Floating, you can compare the effects of market volatilities on Dunham Real and Oppenheimer Senior 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 Oppenheimer Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Oppenheimer Senior.
Diversification Opportunities for Dunham Real and Oppenheimer Senior
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dunham and Oppenheimer is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Oppenheimer Senior Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Senior 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 Oppenheimer Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Senior has no effect on the direction of Dunham Real i.e., Dunham Real and Oppenheimer Senior go up and down completely randomly.
Pair Corralation between Dunham Real and Oppenheimer Senior
Assuming the 90 days horizon Dunham Real is expected to generate 1.18 times less return on investment than Oppenheimer Senior. In addition to that, Dunham Real is 6.6 times more volatile than Oppenheimer Senior Floating. It trades about 0.02 of its total potential returns per unit of risk. Oppenheimer Senior Floating is currently generating about 0.19 per unit of volatility. If you would invest 656.00 in Oppenheimer Senior Floating on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Oppenheimer Senior Floating or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dunham Real Estate vs. Oppenheimer Senior Floating
Performance |
| Timeline |
| Dunham Real Estate |
| Oppenheimer Senior |
Dunham Real and Oppenheimer Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Oppenheimer Senior
The main advantage of trading using opposite Dunham Real and Oppenheimer Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Oppenheimer Senior 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 Oppenheimer Senior will offset losses from the drop in Oppenheimer Senior'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 |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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