Correlation Between Jhancock Diversified and Dunham Small
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Dunham Small 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 Jhancock Diversified and Dunham Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Diversified Macro and Dunham Small Cap, you can compare the effects of market volatilities on Jhancock Diversified and Dunham Small 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 Jhancock Diversified with a short position of Dunham Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Dunham Small.
Diversification Opportunities for Jhancock Diversified and Dunham Small
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jhancock and Dunham is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Dunham Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Small Cap and Jhancock Diversified 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 Jhancock Diversified Macro are associated (or correlated) with Dunham Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Small Cap has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Dunham Small go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Dunham Small
Assuming the 90 days horizon Jhancock Diversified Macro is expected to under-perform the Dunham Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jhancock Diversified Macro is 1.97 times less risky than Dunham Small. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Dunham Small Cap is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,826 in Dunham Small Cap on September 3, 2024 and sell it today you would earn a total of 291.00 from holding Dunham Small Cap or generate 15.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Dunham Small Cap
Performance |
| Timeline |
| Jhancock Diversified |
| Dunham Small Cap |
Jhancock Diversified and Dunham Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Dunham Small
The main advantage of trading using opposite Jhancock Diversified and Dunham Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Dunham Small 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 Small will offset losses from the drop in Dunham Small's long position.| Jhancock Diversified vs. Goldman Sachs Short | Jhancock Diversified vs. Angel Oak Ultrashort | Jhancock Diversified vs. Siit Ultra Short | Jhancock Diversified vs. Sterling Capital Short |
| Dunham Small vs. Jhancock Diversified Macro | Dunham Small vs. Calvert Conservative Allocation | Dunham Small vs. Harbor Diversified International | Dunham Small vs. Fidelity Advisor Diversified |
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 Stocks Directory module to find actively traded stocks across global markets.
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