Correlation Between Dunham High and Voya Multi-manager
Can any of the company-specific risk be diversified away by investing in both Dunham High and Voya Multi-manager 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 Voya Multi-manager 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 Voya Multi Manager International, you can compare the effects of market volatilities on Dunham High and Voya Multi-manager 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 Voya Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Voya Multi-manager.
Diversification Opportunities for Dunham High and Voya Multi-manager
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dunham and Voya is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Voya Multi Manager Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager 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 Voya Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Dunham High i.e., Dunham High and Voya Multi-manager go up and down completely randomly.
Pair Corralation between Dunham High and Voya Multi-manager
Assuming the 90 days horizon Dunham High is expected to generate 1.69 times less return on investment than Voya Multi-manager. But when comparing it to its historical volatility, Dunham High Yield is 4.29 times less risky than Voya Multi-manager. It trades about 0.41 of its potential returns per unit of risk. Voya Multi Manager International is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 5,261 in Voya Multi Manager International on October 25, 2024 and sell it today you would earn a total of 122.00 from holding Voya Multi Manager International or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham High Yield vs. Voya Multi Manager Internation
Performance |
| Timeline |
| Dunham High Yield |
| Voya Multi Manager |
Dunham High and Voya Multi-manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Voya Multi-manager
The main advantage of trading using opposite Dunham High and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham High position performs unexpectedly, Voya Multi-manager 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 Voya Multi-manager will offset losses from the drop in Voya Multi-manager's long position.| Dunham High vs. Franklin Moderate Allocation | Dunham High vs. Upright Assets Allocation | Dunham High vs. Growth Allocation Fund | Dunham High vs. Guidemark Large Cap |
| Voya Multi-manager vs. Short Precious Metals | Voya Multi-manager vs. Oppenheimer Gold Special | Voya Multi-manager vs. James Balanced Golden | Voya Multi-manager vs. Gamco Global Gold |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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