Correlation Between Lord Abbett and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Lord Abbett 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 Lord Abbett and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Income and Dunham Real Estate, you can compare the effects of market volatilities on Lord Abbett 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 Lord Abbett with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and Dunham Real.
Diversification Opportunities for Lord Abbett and Dunham Real
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lord and Dunham is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Income 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 Lord Abbett 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 Lord Abbett Income 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 Lord Abbett i.e., Lord Abbett and Dunham Real go up and down completely randomly.
Pair Corralation between Lord Abbett and Dunham Real
Assuming the 90 days horizon Lord Abbett is expected to generate 130.43 times less return on investment than Dunham Real. But when comparing it to its historical volatility, Lord Abbett Income is 2.15 times less risky than Dunham Real. It trades about 0.0 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,452 in Dunham Real Estate on September 3, 2024 and sell it today you would earn a total of 84.00 from holding Dunham Real Estate or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Income vs. Dunham Real Estate
Performance |
| Timeline |
| Lord Abbett Income |
| Dunham Real Estate |
Lord Abbett and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and Dunham Real
The main advantage of trading using opposite Lord Abbett and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett 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.| Lord Abbett vs. Scharf Fund Retail | Lord Abbett vs. Ms Global Fixed | Lord Abbett vs. Balanced Fund Retail | Lord Abbett vs. Us Vector Equity |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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