Correlation Between Europac Gold and Dunham Large
Can any of the company-specific risk be diversified away by investing in both Europac Gold and Dunham Large 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 Europac Gold and Dunham Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Dunham Large Cap, you can compare the effects of market volatilities on Europac Gold and Dunham Large 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 Europac Gold with a short position of Dunham Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Dunham Large.
Diversification Opportunities for Europac Gold and Dunham Large
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Europac and Dunham is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Dunham Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Large Cap and Europac Gold 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 Europac Gold Fund are associated (or correlated) with Dunham Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Large Cap has no effect on the direction of Europac Gold i.e., Europac Gold and Dunham Large go up and down completely randomly.
Pair Corralation between Europac Gold and Dunham Large
Assuming the 90 days horizon Europac Gold Fund is expected to under-perform the Dunham Large. In addition to that, Europac Gold is 6.71 times more volatile than Dunham Large Cap. It trades about -0.05 of its total potential returns per unit of risk. Dunham Large Cap is currently generating about -0.16 per unit of volatility. If you would invest 1,955 in Dunham Large Cap on September 13, 2024 and sell it today you would lose (28.00) from holding Dunham Large Cap or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europac Gold Fund vs. Dunham Large Cap
Performance |
| Timeline |
| Europac Gold |
| Dunham Large Cap |
Europac Gold and Dunham Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Dunham Large
The main advantage of trading using opposite Europac Gold and Dunham Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Dunham Large 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 Large will offset losses from the drop in Dunham Large's long position.| Europac Gold vs. Europac International Value | Europac Gold vs. Europac International Dividend | Europac Gold vs. Ep Emerging Markets | Europac Gold vs. Europac International Bond |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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