Correlation Between Dunham Real and Jpmorgan Research
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Jpmorgan Research 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 Jpmorgan Research 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 Jpmorgan Research Equity, you can compare the effects of market volatilities on Dunham Real and Jpmorgan Research 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 Jpmorgan Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Jpmorgan Research.
Diversification Opportunities for Dunham Real and Jpmorgan Research
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dunham and Jpmorgan is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Jpmorgan Research Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Research Equity 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 Jpmorgan Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Research Equity has no effect on the direction of Dunham Real i.e., Dunham Real and Jpmorgan Research go up and down completely randomly.
Pair Corralation between Dunham Real and Jpmorgan Research
Assuming the 90 days horizon Dunham Real Estate is expected to generate 2.1 times more return on investment than Jpmorgan Research. However, Dunham Real is 2.1 times more volatile than Jpmorgan Research Equity. It trades about 0.05 of its potential returns per unit of risk. Jpmorgan Research Equity is currently generating about 0.09 per unit of risk. If you would invest 1,255 in Dunham Real Estate on November 3, 2024 and sell it today you would earn a total of 159.00 from holding Dunham Real Estate or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Real Estate vs. Jpmorgan Research Equity
Performance |
| Timeline |
| Dunham Real Estate |
| Jpmorgan Research Equity |
Dunham Real and Jpmorgan Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Jpmorgan Research
The main advantage of trading using opposite Dunham Real and Jpmorgan Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Jpmorgan Research 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 Jpmorgan Research will offset losses from the drop in Jpmorgan Research's long position.| Dunham Real vs. Angel Oak Multi Strategy | Dunham Real vs. Siit Emerging Markets | Dunham Real vs. Ashmore Emerging Markets | Dunham Real vs. Artisan Developing World |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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