Correlation Between Needham Aggressive and Dunham Emerging
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Dunham Emerging 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 Needham Aggressive and Dunham Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and Dunham Emerging Markets, you can compare the effects of market volatilities on Needham Aggressive and Dunham Emerging 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 Needham Aggressive with a short position of Dunham Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Dunham Emerging.
Diversification Opportunities for Needham Aggressive and Dunham Emerging
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Needham and Dunham is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Dunham Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Emerging Markets and Needham Aggressive 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 Needham Aggressive Growth are associated (or correlated) with Dunham Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Emerging Markets has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Dunham Emerging go up and down completely randomly.
Pair Corralation between Needham Aggressive and Dunham Emerging
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 1.64 times more return on investment than Dunham Emerging. However, Needham Aggressive is 1.64 times more volatile than Dunham Emerging Markets. It trades about 0.09 of its potential returns per unit of risk. Dunham Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest 4,909 in Needham Aggressive Growth on November 3, 2024 and sell it today you would earn a total of 133.00 from holding Needham Aggressive Growth or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Dunham Emerging Markets
Performance |
| Timeline |
| Needham Aggressive Growth |
| Dunham Emerging Markets |
Needham Aggressive and Dunham Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Dunham Emerging
The main advantage of trading using opposite Needham Aggressive and Dunham Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Dunham Emerging 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 Emerging will offset losses from the drop in Dunham Emerging's long position.| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
| Dunham Emerging vs. The Hartford Healthcare | Dunham Emerging vs. Allianzgi Health Sciences | Dunham Emerging vs. Eventide Healthcare Life | Dunham Emerging vs. Highland Longshort Healthcare |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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