Correlation Between Dunham Emerging and Aqr Sustainable
Can any of the company-specific risk be diversified away by investing in both Dunham Emerging and Aqr Sustainable 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 Aqr Sustainable 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 Aqr Sustainable Long Short, you can compare the effects of market volatilities on Dunham Emerging and Aqr Sustainable 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 Aqr Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Emerging and Aqr Sustainable.
Diversification Opportunities for Dunham Emerging and Aqr Sustainable
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dunham and Aqr is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Emerging Markets and Aqr Sustainable Long Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Sustainable Long 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 Aqr Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Sustainable Long has no effect on the direction of Dunham Emerging i.e., Dunham Emerging and Aqr Sustainable go up and down completely randomly.
Pair Corralation between Dunham Emerging and Aqr Sustainable
Assuming the 90 days horizon Dunham Emerging Markets is expected to generate 0.21 times more return on investment than Aqr Sustainable. However, Dunham Emerging Markets is 4.67 times less risky than Aqr Sustainable. It trades about -0.2 of its potential returns per unit of risk. Aqr Sustainable Long Short is currently generating about -0.2 per unit of risk. If you would invest 1,432 in Dunham Emerging Markets on October 9, 2024 and sell it today you would lose (41.00) from holding Dunham Emerging Markets or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Emerging Markets vs. Aqr Sustainable Long Short
Performance |
| Timeline |
| Dunham Emerging Markets |
| Aqr Sustainable Long |
Dunham Emerging and Aqr Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Emerging and Aqr Sustainable
The main advantage of trading using opposite Dunham Emerging and Aqr Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Emerging position performs unexpectedly, Aqr Sustainable 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 Aqr Sustainable will offset losses from the drop in Aqr Sustainable's long position.| Dunham Emerging vs. Dunham Dynamic Macro | Dunham Emerging vs. Dunham Porategovernment Bond | Dunham Emerging vs. Dunham Focused Large | Dunham Emerging vs. Dunham International Opportunity |
| Aqr Sustainable vs. Aqr Large Cap | Aqr Sustainable vs. Aqr Large Cap | Aqr Sustainable vs. Aqr International Defensive | Aqr Sustainable vs. Aqr International Defensive |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |