Correlation Between Shelton Emerging and Dunham Dynamic
Can any of the company-specific risk be diversified away by investing in both Shelton Emerging and Dunham Dynamic 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 Shelton Emerging and Dunham Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Emerging Markets and Dunham Dynamic Macro, you can compare the effects of market volatilities on Shelton Emerging and Dunham Dynamic 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 Shelton Emerging with a short position of Dunham Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Emerging and Dunham Dynamic.
Diversification Opportunities for Shelton Emerging and Dunham Dynamic
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shelton and Dunham is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Emerging Markets and Dunham Dynamic Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Dynamic Macro and Shelton Emerging 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 Shelton Emerging Markets are associated (or correlated) with Dunham Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Dynamic Macro has no effect on the direction of Shelton Emerging i.e., Shelton Emerging and Dunham Dynamic go up and down completely randomly.
Pair Corralation between Shelton Emerging and Dunham Dynamic
Assuming the 90 days horizon Shelton Emerging Markets is expected to under-perform the Dunham Dynamic. In addition to that, Shelton Emerging is 4.34 times more volatile than Dunham Dynamic Macro. It trades about -0.24 of its total potential returns per unit of risk. Dunham Dynamic Macro is currently generating about 0.11 per unit of volatility. If you would invest 1,228 in Dunham Dynamic Macro on September 5, 2024 and sell it today you would earn a total of 14.00 from holding Dunham Dynamic Macro or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Emerging Markets vs. Dunham Dynamic Macro
Performance |
| Timeline |
| Shelton Emerging Markets |
| Dunham Dynamic Macro |
Shelton Emerging and Dunham Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Emerging and Dunham Dynamic
The main advantage of trading using opposite Shelton Emerging and Dunham Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Emerging position performs unexpectedly, Dunham Dynamic 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 Dynamic will offset losses from the drop in Dunham Dynamic's long position.| Shelton Emerging vs. Balter Invenomic Fund | Shelton Emerging vs. Shelton Emerging Markets | Shelton Emerging vs. California Tax Free Income | Shelton Emerging vs. Shelton Funds |
| Dunham Dynamic vs. Transamerica Emerging Markets | Dunham Dynamic vs. Morgan Stanley Emerging | Dunham Dynamic vs. Ep Emerging Markets | Dunham Dynamic vs. Shelton Emerging Markets |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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