Correlation Between NYSE Composite and Dunham Us
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Dunham Us 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 Us 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 Enhanced Market, you can compare the effects of market volatilities on NYSE Composite and Dunham Us 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 Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Dunham Us.
Diversification Opportunities for NYSE Composite and Dunham Us
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Dunham is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Dunham Enhanced Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Enhanced Market 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 Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Enhanced Market has no effect on the direction of NYSE Composite i.e., NYSE Composite and Dunham Us go up and down completely randomly.
Pair Corralation between NYSE Composite and Dunham Us
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.36 times less return on investment than Dunham Us. But when comparing it to its historical volatility, NYSE Composite is 1.5 times less risky than Dunham Us. It trades about 0.43 of its potential returns per unit of risk. Dunham Enhanced Market is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,915 in Dunham Enhanced Market on September 3, 2024 and sell it today you would earn a total of 140.00 from holding Dunham Enhanced Market or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Dunham Enhanced Market
Performance |
| Timeline |
NYSE Composite and Dunham Us Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Dunham Enhanced Market
Pair trading matchups for Dunham Us
Pair Trading with NYSE Composite and Dunham Us
The main advantage of trading using opposite NYSE Composite and Dunham Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Dunham Us 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 Us will offset losses from the drop in Dunham Us' long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Dunham Us vs. Small Cap Stock | Dunham Us vs. Fuller Thaler Behavioral | Dunham Us vs. The Gabelli Small | Dunham Us vs. Tax Managed Mid Small |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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