Correlation Between Dunham Emerging and Oshaughnessy Market
Can any of the company-specific risk be diversified away by investing in both Dunham Emerging and Oshaughnessy Market 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 Emerging and Oshaughnessy Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Emerging Markets and Oshaughnessy Market Leaders, you can compare the effects of market volatilities on Dunham Emerging and Oshaughnessy Market 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 Emerging with a short position of Oshaughnessy Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Emerging and Oshaughnessy Market.
Diversification Opportunities for Dunham Emerging and Oshaughnessy Market
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dunham and Oshaughnessy is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Emerging Markets and Oshaughnessy Market Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshaughnessy Market and Dunham Emerging 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 Emerging Markets are associated (or correlated) with Oshaughnessy Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshaughnessy Market has no effect on the direction of Dunham Emerging i.e., Dunham Emerging and Oshaughnessy Market go up and down completely randomly.
Pair Corralation between Dunham Emerging and Oshaughnessy Market
Assuming the 90 days horizon Dunham Emerging Markets is expected to generate 0.26 times more return on investment than Oshaughnessy Market. However, Dunham Emerging Markets is 3.85 times less risky than Oshaughnessy Market. It trades about -0.24 of its potential returns per unit of risk. Oshaughnessy Market Leaders is currently generating about -0.27 per unit of risk. If you would invest 1,432 in Dunham Emerging Markets on October 10, 2024 and sell it today you would lose (52.00) from holding Dunham Emerging Markets or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Emerging Markets vs. Oshaughnessy Market Leaders
Performance |
| Timeline |
| Dunham Emerging Markets |
| Oshaughnessy Market |
Dunham Emerging and Oshaughnessy Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Emerging and Oshaughnessy Market
The main advantage of trading using opposite Dunham Emerging and Oshaughnessy Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Emerging position performs unexpectedly, Oshaughnessy Market 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 Oshaughnessy Market will offset losses from the drop in Oshaughnessy Market's long position.| Dunham Emerging vs. Virtus High Yield | Dunham Emerging vs. Strategic Advisers Income | Dunham Emerging vs. Neuberger Berman Income | Dunham Emerging vs. Buffalo High Yield |
| Oshaughnessy Market vs. Barings Global Floating | Oshaughnessy Market vs. Ab Global Bond | Oshaughnessy Market vs. Harding Loevner Global | Oshaughnessy Market vs. Ms Global Fixed |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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