Correlation Between Guidemark(r) Large and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Guidemark(r) Large 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 Guidemark(r) Large and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidemark Large Cap and Dunham Real Estate, you can compare the effects of market volatilities on Guidemark(r) Large 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 Guidemark(r) Large with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark(r) Large and Dunham Real.
Diversification Opportunities for Guidemark(r) Large and Dunham Real
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guidemark(r) and Dunham is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap 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 Guidemark(r) Large 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 Guidemark Large Cap 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 Guidemark(r) Large i.e., Guidemark(r) Large and Dunham Real go up and down completely randomly.
Pair Corralation between Guidemark(r) Large and Dunham Real
Assuming the 90 days horizon Guidemark Large Cap is expected to under-perform the Dunham Real. In addition to that, Guidemark(r) Large is 1.2 times more volatile than Dunham Real Estate. It trades about -0.21 of its total potential returns per unit of risk. Dunham Real Estate is currently generating about -0.19 per unit of volatility. If you would invest 1,477 in Dunham Real Estate on October 11, 2024 and sell it today you would lose (70.00) from holding Dunham Real Estate or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidemark Large Cap vs. Dunham Real Estate
Performance |
| Timeline |
| Guidemark Large Cap |
| Dunham Real Estate |
Guidemark(r) Large and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark(r) Large and Dunham Real
The main advantage of trading using opposite Guidemark(r) Large and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark(r) Large 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.| Guidemark(r) Large vs. Nuveen Short Term | Guidemark(r) Large vs. Delaware Investments Ultrashort | Guidemark(r) Large vs. Barings Active Short | Guidemark(r) Large vs. Aamhimco Short Duration |
| Dunham Real vs. Ab Large Cap | Dunham Real vs. Fidelity Large Cap | Dunham Real vs. Guidemark Large Cap | Dunham Real vs. Qs Large Cap |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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