Correlation Between Gurtin California and Dunham High
Can any of the company-specific risk be diversified away by investing in both Gurtin California and Dunham High 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 Gurtin California and Dunham High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gurtin California Muni and Dunham High Yield, you can compare the effects of market volatilities on Gurtin California and Dunham High 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 Gurtin California with a short position of Dunham High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gurtin California and Dunham High.
Diversification Opportunities for Gurtin California and Dunham High
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gurtin and Dunham is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gurtin California Muni and Dunham High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham High Yield and Gurtin California 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 Gurtin California Muni are associated (or correlated) with Dunham High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham High Yield has no effect on the direction of Gurtin California i.e., Gurtin California and Dunham High go up and down completely randomly.
Pair Corralation between Gurtin California and Dunham High
Assuming the 90 days horizon Gurtin California Muni is expected to under-perform the Dunham High. But the mutual fund apears to be less risky and, when comparing its historical volatility, Gurtin California Muni is 1.07 times less risky than Dunham High. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Dunham High Yield is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 848.00 in Dunham High Yield on November 2, 2024 and sell it today you would earn a total of 26.00 from holding Dunham High Yield or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gurtin California Muni vs. Dunham High Yield
Performance |
| Timeline |
| Gurtin California Muni |
| Dunham High Yield |
Gurtin California and Dunham High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gurtin California and Dunham High
The main advantage of trading using opposite Gurtin California and Dunham High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gurtin California position performs unexpectedly, Dunham High 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 High will offset losses from the drop in Dunham High's long position.| Gurtin California vs. Fznopx | Gurtin California vs. Fabwx | Gurtin California vs. Fuhkbx | Gurtin California vs. Fwnhtx |
| Dunham High vs. Siit High Yield | Dunham High vs. Ab Bond Inflation | Dunham High vs. Barings High Yield | Dunham High vs. Ab Bond Inflation |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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