Correlation Between Dunham Appreciation and Dunham Large
Can any of the company-specific risk be diversified away by investing in both Dunham Appreciation and Dunham Large 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 Appreciation and Dunham Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Appreciation Income and Dunham Large Cap, you can compare the effects of market volatilities on Dunham Appreciation and Dunham Large 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 Appreciation with a short position of Dunham Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Appreciation and Dunham Large.
Diversification Opportunities for Dunham Appreciation and Dunham Large
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dunham and DUNHAM is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Appreciation Income and Dunham Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Large Cap and Dunham Appreciation 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 Appreciation Income are associated (or correlated) with Dunham Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Large Cap has no effect on the direction of Dunham Appreciation i.e., Dunham Appreciation and Dunham Large go up and down completely randomly.
Pair Corralation between Dunham Appreciation and Dunham Large
Assuming the 90 days horizon Dunham Appreciation is expected to generate 3.84 times less return on investment than Dunham Large. But when comparing it to its historical volatility, Dunham Appreciation Income is 10.74 times less risky than Dunham Large. It trades about 0.29 of its potential returns per unit of risk. Dunham Large Cap is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,617 in Dunham Large Cap on August 31, 2024 and sell it today you would earn a total of 519.00 from holding Dunham Large Cap or generate 32.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Appreciation Income vs. Dunham Large Cap
Performance |
| Timeline |
| Dunham Appreciation |
| Dunham Large Cap |
Dunham Appreciation and Dunham Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Appreciation and Dunham Large
The main advantage of trading using opposite Dunham Appreciation and Dunham Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Appreciation position performs unexpectedly, Dunham Large 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 Dunham Large will offset losses from the drop in Dunham Large's long position.| Dunham Appreciation vs. Pace International Emerging | Dunham Appreciation vs. Shelton Emerging Markets | Dunham Appreciation vs. Black Oak Emerging | Dunham Appreciation vs. Eagle Mlp Strategy |
| Dunham Large vs. Qs Small Capitalization | Dunham Large vs. Small Pany Growth | Dunham Large vs. Legg Mason Partners | Dunham Large vs. Jpmorgan Small 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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