Correlation Between Catalystsmh High and Dunham Dynamic
Can any of the company-specific risk be diversified away by investing in both Catalystsmh High and Dunham Dynamic 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 Catalystsmh High and Dunham Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystsmh High Income and Dunham Dynamic Macro, you can compare the effects of market volatilities on Catalystsmh High and Dunham Dynamic 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 Catalystsmh High with a short position of Dunham Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalystsmh High and Dunham Dynamic.
Diversification Opportunities for Catalystsmh High and Dunham Dynamic
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Catalystsmh and Dunham is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Catalystsmh High Income and Dunham Dynamic Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Dynamic Macro and Catalystsmh High 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 Catalystsmh High Income are associated (or correlated) with Dunham Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Dynamic Macro has no effect on the direction of Catalystsmh High i.e., Catalystsmh High and Dunham Dynamic go up and down completely randomly.
Pair Corralation between Catalystsmh High and Dunham Dynamic
Assuming the 90 days horizon Catalystsmh High Income is expected to generate 2.36 times more return on investment than Dunham Dynamic. However, Catalystsmh High is 2.36 times more volatile than Dunham Dynamic Macro. It trades about 0.18 of its potential returns per unit of risk. Dunham Dynamic Macro is currently generating about 0.23 per unit of risk. If you would invest 370.00 in Catalystsmh High Income on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Catalystsmh High Income or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalystsmh High Income vs. Dunham Dynamic Macro
Performance |
| Timeline |
| Catalystsmh High Income |
| Dunham Dynamic Macro |
Catalystsmh High and Dunham Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalystsmh High and Dunham Dynamic
The main advantage of trading using opposite Catalystsmh High and Dunham Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalystsmh High position performs unexpectedly, Dunham Dynamic 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 Dynamic will offset losses from the drop in Dunham Dynamic's long position.| Catalystsmh High vs. Small Pany Growth | Catalystsmh High vs. Fxybjx | Catalystsmh High vs. Fkhemx | Catalystsmh High vs. Tax Managed Large Cap |
| Dunham Dynamic vs. Inverse Government Long | Dunham Dynamic vs. Ridgeworth Seix Government | Dunham Dynamic vs. Payden Government Fund | Dunham Dynamic vs. Federated Government Income |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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