Correlation Between Falcon Focus and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Falcon Focus 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 Falcon Focus and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Focus Scv and Dunham Real Estate, you can compare the effects of market volatilities on Falcon Focus 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 Falcon Focus with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and Dunham Real.
Diversification Opportunities for Falcon Focus and Dunham Real
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Falcon and Dunham is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Focus Scv 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 Falcon Focus 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 Falcon Focus Scv 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 Falcon Focus i.e., Falcon Focus and Dunham Real go up and down completely randomly.
Pair Corralation between Falcon Focus and Dunham Real
Assuming the 90 days horizon Falcon Focus Scv is expected to generate 0.65 times more return on investment than Dunham Real. However, Falcon Focus Scv is 1.53 times less risky than Dunham Real. It trades about 0.09 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.03 per unit of risk. If you would invest 947.00 in Falcon Focus Scv on September 3, 2024 and sell it today you would earn a total of 368.00 from holding Falcon Focus Scv or generate 38.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falcon Focus Scv vs. Dunham Real Estate
Performance |
| Timeline |
| Falcon Focus Scv |
| Dunham Real Estate |
Falcon Focus and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Focus and Dunham Real
The main advantage of trading using opposite Falcon Focus and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Focus 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.| Falcon Focus vs. Blackrock Inflation Protected | Falcon Focus vs. T Rowe Price | Falcon Focus vs. Oklahoma College Savings | Falcon Focus vs. Inflation Protected Bond Fund |
| Dunham Real vs. Vanguard Reit Index | Dunham Real vs. Vanguard Reit Index | Dunham Real vs. Vanguard Reit Index | Dunham Real vs. Dfa Real Estate |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |