Correlation Between Guidepath Growth and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Guidepath Growth 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 Guidepath Growth and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidepath Growth Allocation and Dunham Real Estate, you can compare the effects of market volatilities on Guidepath Growth 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 Guidepath Growth with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath Growth and Dunham Real.
Diversification Opportunities for Guidepath Growth and Dunham Real
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guidepath and Dunham is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Growth Allocation 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 Guidepath Growth 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 Guidepath Growth Allocation 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 Guidepath Growth i.e., Guidepath Growth and Dunham Real go up and down completely randomly.
Pair Corralation between Guidepath Growth and Dunham Real
Assuming the 90 days horizon Guidepath Growth is expected to generate 1.5 times less return on investment than Dunham Real. But when comparing it to its historical volatility, Guidepath Growth Allocation is 1.25 times less risky than Dunham Real. It trades about 0.18 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,459 in Dunham Real Estate on September 13, 2024 and sell it today you would earn a total of 41.00 from holding Dunham Real Estate or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guidepath Growth Allocation vs. Dunham Real Estate
Performance |
| Timeline |
| Guidepath Growth All |
| Dunham Real Estate |
Guidepath Growth and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidepath Growth and Dunham Real
The main advantage of trading using opposite Guidepath Growth and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidepath Growth 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.| Guidepath Growth vs. Guidemark E Fixed | Guidepath Growth vs. Guidemark Large Cap | Guidepath Growth vs. Guidemark Large Cap | Guidepath Growth vs. Guidemark Smallmid Cap |
| Dunham Real vs. Falcon Focus Scv | Dunham Real vs. Materials Portfolio Fidelity | Dunham Real vs. Scharf Global Opportunity | Dunham Real vs. Red Oak Technology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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