Correlation Between Dunham Real and Pender Real
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Pender Real 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 Pender Real 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 Pender Real Estate, you can compare the effects of market volatilities on Dunham Real and Pender Real 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 Pender Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Pender Real.
Diversification Opportunities for Dunham Real and Pender Real
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dunham and Pender is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Pender Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pender Real Estate 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 Pender Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pender Real Estate has no effect on the direction of Dunham Real i.e., Dunham Real and Pender Real go up and down completely randomly.
Pair Corralation between Dunham Real and Pender Real
Assuming the 90 days horizon Dunham Real Estate is expected to under-perform the Pender Real. In addition to that, Dunham Real is 6.12 times more volatile than Pender Real Estate. It trades about -0.25 of its total potential returns per unit of risk. Pender Real Estate is currently generating about -0.05 per unit of volatility. If you would invest 1,006 in Pender Real Estate on October 11, 2024 and sell it today you would lose (2.00) from holding Pender Real Estate or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Dunham Real Estate vs. Pender Real Estate
Performance |
| Timeline |
| Dunham Real Estate |
| Pender Real Estate |
Dunham Real and Pender Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and Pender Real
The main advantage of trading using opposite Dunham Real and Pender Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Pender Real 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 Pender Real will offset losses from the drop in Pender Real's long position.| Dunham Real vs. Rbb Fund | Dunham Real vs. Us Vector Equity | Dunham Real vs. Predex Funds | Dunham Real vs. T Rowe Price |
| Pender Real vs. Tortoise Energy Independence | Pender Real vs. Goehring Rozencwajg Resources | Pender Real vs. Blackrock All Cap Energy | Pender Real vs. Alpsalerian Energy Infrastructure |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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