Correlation Between Dunham High and Multi Index
Can any of the company-specific risk be diversified away by investing in both Dunham High and Multi Index 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 High and Multi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham High Yield and Multi Index 2030 Lifetime, you can compare the effects of market volatilities on Dunham High and Multi Index 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 High with a short position of Multi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Multi Index.
Diversification Opportunities for Dunham High and Multi Index
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and Multi is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Multi Index 2030 Lifetime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Index 2030 and Dunham High 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 High Yield are associated (or correlated) with Multi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Index 2030 has no effect on the direction of Dunham High i.e., Dunham High and Multi Index go up and down completely randomly.
Pair Corralation between Dunham High and Multi Index
Assuming the 90 days horizon Dunham High is expected to generate 3.04 times less return on investment than Multi Index. But when comparing it to its historical volatility, Dunham High Yield is 2.72 times less risky than Multi Index. It trades about 0.24 of its potential returns per unit of risk. Multi Index 2030 Lifetime is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,215 in Multi Index 2030 Lifetime on November 8, 2024 and sell it today you would earn a total of 36.00 from holding Multi Index 2030 Lifetime or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dunham High Yield vs. Multi Index 2030 Lifetime
Performance |
| Timeline |
| Dunham High Yield |
| Multi Index 2030 |
Dunham High and Multi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Multi Index
The main advantage of trading using opposite Dunham High and Multi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham High position performs unexpectedly, Multi Index 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 Multi Index will offset losses from the drop in Multi Index's long position.| Dunham High vs. Nuveen Strategic Municipal | Dunham High vs. Morningstar Municipal Bond | Dunham High vs. Blrc Sgy Mnp | Dunham High vs. Jpmorgan Ultra Short Municipal |
| Multi Index vs. Ishares Municipal Bond | Multi Index vs. Us Government Securities | Multi Index vs. Us Government Securities | Multi Index vs. Jhancock Mgd Acct |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| CEOs Directory Screen CEOs from public companies around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |