Correlation Between Catalyst/millburn and Dunham High
Can any of the company-specific risk be diversified away by investing in both Catalyst/millburn and Dunham High 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 Catalyst/millburn and Dunham High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystmillburn Hedge Strategy and Dunham High Yield, you can compare the effects of market volatilities on Catalyst/millburn and Dunham High 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 Catalyst/millburn with a short position of Dunham High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/millburn and Dunham High.
Diversification Opportunities for Catalyst/millburn and Dunham High
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Catalyst/millburn and Dunham is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Catalystmillburn Hedge Strateg and Dunham High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham High Yield and Catalyst/millburn 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 Catalystmillburn Hedge Strategy are associated (or correlated) with Dunham High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham High Yield has no effect on the direction of Catalyst/millburn i.e., Catalyst/millburn and Dunham High go up and down completely randomly.
Pair Corralation between Catalyst/millburn and Dunham High
Assuming the 90 days horizon Catalyst/millburn is expected to generate 1.12 times less return on investment than Dunham High. In addition to that, Catalyst/millburn is 2.85 times more volatile than Dunham High Yield. It trades about 0.04 of its total potential returns per unit of risk. Dunham High Yield is currently generating about 0.13 per unit of volatility. If you would invest 734.00 in Dunham High Yield on October 14, 2024 and sell it today you would earn a total of 131.00 from holding Dunham High Yield or generate 17.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalystmillburn Hedge Strateg vs. Dunham High Yield
Performance |
| Timeline |
| Catalystmillburn Hedge |
| Dunham High Yield |
Catalyst/millburn and Dunham High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst/millburn and Dunham High
The main advantage of trading using opposite Catalyst/millburn and Dunham High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/millburn position performs unexpectedly, Dunham High 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 High will offset losses from the drop in Dunham High's long position.| Catalyst/millburn vs. Franklin Adjustable Government | Catalyst/millburn vs. Lord Abbett Government | Catalyst/millburn vs. Us Government Securities | Catalyst/millburn vs. Ridgeworth Seix Government |
| Dunham High vs. Catalystmillburn Hedge Strategy | Dunham High vs. Origin Emerging Markets | Dunham High vs. Virtus Multi Strategy Target | Dunham High vs. Realestaterealreturn Strategy Fund |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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