Correlation Between Eagle Mid and Dunham Large
Can any of the company-specific risk be diversified away by investing in both Eagle Mid and Dunham Large 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 Eagle Mid and Dunham Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Mid Cap and Dunham Large Cap, you can compare the effects of market volatilities on Eagle Mid and Dunham Large 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 Eagle Mid with a short position of Dunham Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mid and Dunham Large.
Diversification Opportunities for Eagle Mid and Dunham Large
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eagle and Dunham is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mid Cap and Dunham Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Large Cap and Eagle Mid 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 Eagle Mid Cap are associated (or correlated) with Dunham Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Large Cap has no effect on the direction of Eagle Mid i.e., Eagle Mid and Dunham Large go up and down completely randomly.
Pair Corralation between Eagle Mid and Dunham Large
If you would invest 2,024 in Dunham Large Cap on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Dunham Large Cap or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Eagle Mid Cap vs. Dunham Large Cap
Performance |
| Timeline |
| Eagle Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dunham Large Cap |
Eagle Mid and Dunham Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mid and Dunham Large
The main advantage of trading using opposite Eagle Mid and Dunham Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mid position performs unexpectedly, Dunham Large 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 Large will offset losses from the drop in Dunham Large's long position.| Eagle Mid vs. T Rowe Price | Eagle Mid vs. Artisan Thematic Fund | Eagle Mid vs. Commonwealth Global Fund | Eagle Mid vs. Balanced Fund Investor |
| Dunham Large vs. Glg Intl Small | Dunham Large vs. Tax Managed Mid Small | Dunham Large vs. Small Pany Growth | Dunham Large vs. Us Small 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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