Correlation Between Dunham Real and Dunham International
Can any of the company-specific risk be diversified away by investing in both Dunham Real 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 Real 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 Real Estate and Dunham International Stock, you can compare the effects of market volatilities on Dunham Real 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 Real with a short position of Dunham International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Dunham International.
Diversification Opportunities for Dunham Real and Dunham International
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and Dunham is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate 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 Real 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 Real Estate 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 Real i.e., Dunham Real and Dunham International go up and down completely randomly.
Pair Corralation between Dunham Real and Dunham International
Assuming the 90 days horizon Dunham Real Estate is expected to generate 1.23 times more return on investment than Dunham International. However, Dunham Real is 1.23 times more volatile than Dunham International Stock. It trades about 0.08 of its potential returns per unit of risk. Dunham International Stock is currently generating about 0.07 per unit of risk. If you would invest 1,242 in Dunham Real Estate on September 2, 2024 and sell it today you would earn a total of 287.00 from holding Dunham Real Estate or generate 23.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Real Estate vs. Dunham International Stock
Performance |
| Timeline |
| Dunham Real Estate |
| Dunham International |
Dunham Real and Dunham International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Dunham International
The main advantage of trading using opposite Dunham Real and Dunham International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real 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 Real vs. Realty Income | Dunham Real vs. Dynex Capital | Dunham Real vs. First Industrial Realty | Dunham Real vs. Healthcare Realty Trust |
| Dunham International vs. Dunham Small Cap | Dunham International vs. Dunham Emerging Markets | Dunham International vs. Dunham Real Estate | Dunham International vs. Dunham 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |