Correlation Between Forum Real and Dunham Corporate/govern
Can any of the company-specific risk be diversified away by investing in both Forum Real and Dunham Corporate/govern 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 Forum Real and Dunham Corporate/govern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forum Real Estate and Dunham Porategovernment Bond, you can compare the effects of market volatilities on Forum Real and Dunham Corporate/govern 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 Forum Real with a short position of Dunham Corporate/govern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forum Real and Dunham Corporate/govern.
Diversification Opportunities for Forum Real and Dunham Corporate/govern
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Forum and Dunham is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Forum Real Estate and Dunham Porategovernment Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Porategovernment and Forum 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 Forum Real Estate are associated (or correlated) with Dunham Corporate/govern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Porategovernment has no effect on the direction of Forum Real i.e., Forum Real and Dunham Corporate/govern go up and down completely randomly.
Pair Corralation between Forum Real and Dunham Corporate/govern
Assuming the 90 days horizon Forum Real Estate is expected to generate 0.3 times more return on investment than Dunham Corporate/govern. However, Forum Real Estate is 3.34 times less risky than Dunham Corporate/govern. It trades about 0.51 of its potential returns per unit of risk. Dunham Porategovernment Bond is currently generating about 0.04 per unit of risk. If you would invest 869.00 in Forum Real Estate on October 27, 2024 and sell it today you would earn a total of 101.00 from holding Forum Real Estate or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forum Real Estate vs. Dunham Porategovernment Bond
Performance |
| Timeline |
| Forum Real Estate |
| Dunham Porategovernment |
Forum Real and Dunham Corporate/govern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forum Real and Dunham Corporate/govern
The main advantage of trading using opposite Forum Real and Dunham Corporate/govern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forum Real position performs unexpectedly, Dunham Corporate/govern 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 Corporate/govern will offset losses from the drop in Dunham Corporate/govern's long position.| Forum Real vs. Small Pany Growth | Forum Real vs. The Equity Growth | Forum Real vs. Upright Growth Income | Forum Real vs. Growth Allocation Fund |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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