Correlation Between Dunham Floating and Rbc Funds
Can any of the company-specific risk be diversified away by investing in both Dunham Floating and Rbc Funds 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 Rbc Funds 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 Rbc Funds Trust, you can compare the effects of market volatilities on Dunham Floating and Rbc Funds 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 Rbc Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Floating and Rbc Funds.
Diversification Opportunities for Dunham Floating and Rbc Funds
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dunham and Rbc is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Floating Rate and Rbc Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Funds Trust 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 Rbc Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Funds Trust has no effect on the direction of Dunham Floating i.e., Dunham Floating and Rbc Funds go up and down completely randomly.
Pair Corralation between Dunham Floating and Rbc Funds
Assuming the 90 days horizon Dunham Floating Rate is expected to generate 0.16 times more return on investment than Rbc Funds. However, Dunham Floating Rate is 6.35 times less risky than Rbc Funds. It trades about 0.15 of its potential returns per unit of risk. Rbc Funds Trust is currently generating about -0.18 per unit of risk. If you would invest 865.00 in Dunham Floating Rate on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Dunham Floating Rate or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dunham Floating Rate vs. Rbc Funds Trust
Performance |
| Timeline |
| Dunham Floating Rate |
| Rbc Funds Trust |
Dunham Floating and Rbc Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Floating and Rbc Funds
The main advantage of trading using opposite Dunham Floating and Rbc Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Floating position performs unexpectedly, Rbc Funds 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 Rbc Funds will offset losses from the drop in Rbc Funds' long position.| Dunham Floating vs. Pioneer High Yield | Dunham Floating vs. Artisan High Income | Dunham Floating vs. Ab Global Risk | Dunham Floating vs. Morningstar Aggressive Growth |
| Rbc Funds vs. Rbc Small Cap | Rbc Funds vs. Rbc Enterprise Fund | Rbc Funds vs. Rbc Emerging Markets | Rbc Funds vs. Rbc Small Cap |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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