Correlation Between Dunham Emerging and Americafirst Large
Can any of the company-specific risk be diversified away by investing in both Dunham Emerging and Americafirst 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 Emerging and Americafirst Large 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 Americafirst Large Cap, you can compare the effects of market volatilities on Dunham Emerging and Americafirst 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 Emerging with a short position of Americafirst Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Emerging and Americafirst Large.
Diversification Opportunities for Dunham Emerging and Americafirst Large
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dunham and Americafirst is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Emerging Markets and Americafirst Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americafirst Large Cap 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 Americafirst Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americafirst Large Cap has no effect on the direction of Dunham Emerging i.e., Dunham Emerging and Americafirst Large go up and down completely randomly.
Pair Corralation between Dunham Emerging and Americafirst Large
Assuming the 90 days horizon Dunham Emerging Markets is expected to generate 0.9 times more return on investment than Americafirst Large. However, Dunham Emerging Markets is 1.11 times less risky than Americafirst Large. It trades about 0.1 of its potential returns per unit of risk. Americafirst Large Cap is currently generating about -0.11 per unit of risk. If you would invest 1,393 in Dunham Emerging Markets on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Dunham Emerging Markets or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Emerging Markets vs. Americafirst Large Cap
Performance |
| Timeline |
| Dunham Emerging Markets |
| Americafirst Large Cap |
Dunham Emerging and Americafirst Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Emerging and Americafirst Large
The main advantage of trading using opposite Dunham Emerging and Americafirst Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Emerging position performs unexpectedly, Americafirst 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 Americafirst Large will offset losses from the drop in Americafirst Large's long position.| Dunham Emerging vs. Dunham Dynamic Macro | Dunham Emerging vs. Dunham Appreciation Income | Dunham Emerging vs. Dunham Porategovernment Bond | Dunham Emerging vs. Dunham Small Cap |
| Americafirst Large vs. Scharf Global Opportunity | Americafirst Large vs. Ab Value Fund | Americafirst Large vs. Rbc Microcap Value | Americafirst Large vs. T Rowe Price |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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