Correlation Between Dynex Capital and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Dynex Capital and Dunham 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 Dynex Capital and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynex Capital and Dunham Real Estate, you can compare the effects of market volatilities on Dynex Capital and Dunham 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 Dynex Capital with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynex Capital and Dunham Real.
Diversification Opportunities for Dynex Capital and Dunham Real
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dynex and Dunham is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Dynex Capital and Dunham Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Real Estate and Dynex Capital 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 Dynex Capital are associated (or correlated) with Dunham Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Real Estate has no effect on the direction of Dynex Capital i.e., Dynex Capital and Dunham Real go up and down completely randomly.
Pair Corralation between Dynex Capital and Dunham Real
Allowing for the 90-day total investment horizon Dynex Capital is expected to generate 1.07 times less return on investment than Dunham Real. In addition to that, Dynex Capital is 1.01 times more volatile than Dunham Real Estate. It trades about 0.23 of its total potential returns per unit of risk. Dunham Real Estate is currently generating about 0.25 per unit of volatility. If you would invest 1,462 in Dunham Real Estate on September 1, 2024 and sell it today you would earn a total of 64.00 from holding Dunham Real Estate or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynex Capital vs. Dunham Real Estate
Performance |
| Timeline |
| Dynex Capital |
| Dunham Real Estate |
Dynex Capital and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynex Capital and Dunham Real
The main advantage of trading using opposite Dynex Capital and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynex Capital position performs unexpectedly, Dunham 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 Dunham Real will offset losses from the drop in Dunham Real's long position.| Dynex Capital vs. Ellington Residential Mortgage | Dynex Capital vs. Orchid Island Capital | Dynex Capital vs. ARMOUR Residential REIT | Dynex Capital vs. Ellington Financial |
| Dunham Real vs. Touchstone Small Cap | Dunham Real vs. Small Midcap Dividend Income | Dunham Real vs. Baird Smallmid Cap | Dunham Real vs. Us 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |