Correlation Between NYSE Composite and Dunham Emerging
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Dunham Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Dunham Emerging Markets, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Dunham Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Dunham Emerging.
Diversification Opportunities for NYSE Composite and Dunham Emerging
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and Dunham is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Dunham Emerging go up and down completely randomly.
Pair Corralation between NYSE Composite and Dunham Emerging
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.73 times more return on investment than Dunham Emerging. However, NYSE Composite is 1.37 times less risky than Dunham Emerging. It trades about 0.11 of its potential returns per unit of risk. Dunham Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 1,539,127 in NYSE Composite on August 29, 2024 and sell it today you would earn a total of 482,818 from holding NYSE Composite or generate 31.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Dunham Emerging Markets
Performance |
| Timeline |
NYSE Composite and Dunham Emerging Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Dunham Emerging Markets
Pair trading matchups for Dunham Emerging
Pair Trading with NYSE Composite and Dunham Emerging
The main advantage of trading using opposite NYSE Composite and Dunham Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
| Dunham Emerging vs. Dunham Dynamic Macro | Dunham Emerging vs. Dunham Appreciation Income | Dunham Emerging vs. Dunham Porategovernment Bond | Dunham Emerging vs. Dunham Small Cap |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |