Correlation Between Dunham Emerging and Sp Midcap
Can any of the company-specific risk be diversified away by investing in both Dunham Emerging and Sp Midcap 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 Sp Midcap 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 Sp Midcap Index, you can compare the effects of market volatilities on Dunham Emerging and Sp Midcap 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 Sp Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Emerging and Sp Midcap.
Diversification Opportunities for Dunham Emerging and Sp Midcap
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dunham and SPMIX is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Emerging Markets and Sp Midcap Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sp Midcap Index 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 Sp Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sp Midcap Index has no effect on the direction of Dunham Emerging i.e., Dunham Emerging and Sp Midcap go up and down completely randomly.
Pair Corralation between Dunham Emerging and Sp Midcap
Assuming the 90 days horizon Dunham Emerging Markets is expected to generate 0.7 times more return on investment than Sp Midcap. However, Dunham Emerging Markets is 1.43 times less risky than Sp Midcap. It trades about -0.24 of its potential returns per unit of risk. Sp Midcap Index is currently generating about -0.25 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Emerging Markets vs. Sp Midcap Index
Performance |
| Timeline |
| Dunham Emerging Markets |
| Sp Midcap Index |
Dunham Emerging and Sp Midcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Emerging and Sp Midcap
The main advantage of trading using opposite Dunham Emerging and Sp Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Emerging position performs unexpectedly, Sp Midcap 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 Sp Midcap will offset losses from the drop in Sp Midcap'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 |
| Sp Midcap vs. Locorr Dynamic Equity | Sp Midcap vs. Ab Equity Income | Sp Midcap vs. Dws Equity Sector | Sp Midcap vs. Smallcap World Fund |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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