Correlation Between Guidestone Funds and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Guidestone Funds 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 Guidestone Funds and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidestone Funds Impact and Dunham Real Estate, you can compare the effects of market volatilities on Guidestone Funds 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 Guidestone Funds with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidestone Funds and Dunham Real.
Diversification Opportunities for Guidestone Funds and Dunham Real
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guidestone and Dunham is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Guidestone Funds Impact 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 Guidestone Funds 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 Guidestone Funds Impact 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 Guidestone Funds i.e., Guidestone Funds and Dunham Real go up and down completely randomly.
Pair Corralation between Guidestone Funds and Dunham Real
Assuming the 90 days horizon Guidestone Funds Impact is expected to generate 0.69 times more return on investment than Dunham Real. However, Guidestone Funds Impact is 1.45 times less risky than Dunham Real. It trades about 0.07 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.04 per unit of risk. If you would invest 993.00 in Guidestone Funds Impact on September 3, 2024 and sell it today you would earn a total of 295.00 from holding Guidestone Funds Impact or generate 29.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.94% |
| Values | Daily Returns |
Guidestone Funds Impact vs. Dunham Real Estate
Performance |
| Timeline |
| Guidestone Funds Impact |
| Dunham Real Estate |
Guidestone Funds and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidestone Funds and Dunham Real
The main advantage of trading using opposite Guidestone Funds and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidestone Funds 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.| Guidestone Funds vs. Dunham Real Estate | Guidestone Funds vs. Us Real Estate | Guidestone Funds vs. Prudential Real Estate | Guidestone Funds vs. Columbia Real Estate |
| Dunham Real vs. Ep Emerging Markets | Dunham Real vs. Rbc Emerging Markets | Dunham Real vs. Transamerica Emerging Markets | Dunham Real vs. T Rowe Price |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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