Correlation Between Dunham Floating and Dunham International
Can any of the company-specific risk be diversified away by investing in both Dunham Floating and Dunham International 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 Floating and Dunham International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Floating Rate and Dunham International Stock, you can compare the effects of market volatilities on Dunham Floating and Dunham International 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 Floating with a short position of Dunham International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Floating and Dunham International.
Diversification Opportunities for Dunham Floating and Dunham International
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dunham and Dunham is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Floating Rate and Dunham International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham International and Dunham Floating 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 Floating Rate are associated (or correlated) with Dunham International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham International has no effect on the direction of Dunham Floating i.e., Dunham Floating and Dunham International go up and down completely randomly.
Pair Corralation between Dunham Floating and Dunham International
Assuming the 90 days horizon Dunham Floating Rate is expected to generate 0.08 times more return on investment than Dunham International. However, Dunham Floating Rate is 13.01 times less risky than Dunham International. It trades about 0.62 of its potential returns per unit of risk. Dunham International Stock is currently generating about -0.17 per unit of risk. If you would invest 859.00 in Dunham Floating Rate on August 28, 2024 and sell it today you would earn a total of 14.00 from holding Dunham Floating Rate or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Floating Rate vs. Dunham International Stock
Performance |
| Timeline |
| Dunham Floating Rate |
| Dunham International |
Dunham Floating and Dunham International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Floating and Dunham International
The main advantage of trading using opposite Dunham Floating and Dunham International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Floating position performs unexpectedly, Dunham International 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 International will offset losses from the drop in Dunham International's long position.| Dunham Floating vs. Dunham Dynamic Macro | Dunham Floating vs. Dunham Appreciation Income | Dunham Floating vs. Dunham Porategovernment Bond | Dunham Floating vs. Dunham Small Cap |
| Dunham International vs. Dunham Monthly Distribution | Dunham International vs. Dunham Emerging Markets |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |