Correlation Between James Balanced: and Dunham Corporate/govern
Can any of the company-specific risk be diversified away by investing in both James Balanced: 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 James Balanced: 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 James Balanced Golden and Dunham Porategovernment Bond, you can compare the effects of market volatilities on James Balanced: 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 James Balanced: with a short position of Dunham Corporate/govern. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Dunham Corporate/govern.
Diversification Opportunities for James Balanced: and Dunham Corporate/govern
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JAMES and Dunham is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Dunham Porategovernment Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Porategovernment and James Balanced: 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 James Balanced Golden 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 James Balanced: i.e., James Balanced: and Dunham Corporate/govern go up and down completely randomly.
Pair Corralation between James Balanced: and Dunham Corporate/govern
Assuming the 90 days horizon James Balanced Golden is expected to generate 1.81 times more return on investment than Dunham Corporate/govern. However, James Balanced: is 1.81 times more volatile than Dunham Porategovernment Bond. It trades about 0.18 of its potential returns per unit of risk. Dunham Porategovernment Bond is currently generating about 0.06 per unit of risk. If you would invest 2,241 in James Balanced Golden on November 5, 2024 and sell it today you would earn a total of 40.00 from holding James Balanced Golden or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Dunham Porategovernment Bond
Performance |
| Timeline |
| James Balanced Golden |
| Dunham Porategovernment |
James Balanced: and Dunham Corporate/govern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and Dunham Corporate/govern
The main advantage of trading using opposite James Balanced: and Dunham Corporate/govern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: 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.| James Balanced: vs. Permanent Portfolio Class | James Balanced: vs. Berwyn Income Fund | James Balanced: vs. Large Cap Fund | James Balanced: vs. Westcore Plus Bond |
| Dunham Corporate/govern vs. Short Real Estate | Dunham Corporate/govern vs. Dunham Real Estate | Dunham Corporate/govern vs. Fidelity Real Estate | Dunham Corporate/govern vs. Texton Property |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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