Correlation Between Oshaughnessy Market and Dunham Emerging
Can any of the company-specific risk be diversified away by investing in both Oshaughnessy Market 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 Oshaughnessy Market and Dunham Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oshaughnessy Market Leaders and Dunham Emerging Markets, you can compare the effects of market volatilities on Oshaughnessy Market 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 Oshaughnessy Market with a short position of Dunham Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshaughnessy Market and Dunham Emerging.
Diversification Opportunities for Oshaughnessy Market and Dunham Emerging
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oshaughnessy and Dunham is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Oshaughnessy Market Leaders 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 Oshaughnessy Market 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 Oshaughnessy Market Leaders 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 Oshaughnessy Market i.e., Oshaughnessy Market and Dunham Emerging go up and down completely randomly.
Pair Corralation between Oshaughnessy Market and Dunham Emerging
Assuming the 90 days horizon Oshaughnessy Market Leaders is expected to under-perform the Dunham Emerging. In addition to that, Oshaughnessy Market is 3.85 times more volatile than Dunham Emerging Markets. It trades about -0.27 of its total potential returns per unit of risk. Dunham Emerging Markets is currently generating about -0.24 per unit of volatility. If you would invest 1,432 in Dunham Emerging Markets on October 10, 2024 and sell it today you would lose (52.00) from holding Dunham Emerging Markets or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oshaughnessy Market Leaders vs. Dunham Emerging Markets
Performance |
| Timeline |
| Oshaughnessy Market |
| Dunham Emerging Markets |
Oshaughnessy Market and Dunham Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oshaughnessy Market and Dunham Emerging
The main advantage of trading using opposite Oshaughnessy Market and Dunham Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshaughnessy Market 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.| Oshaughnessy Market vs. Barings Global Floating | Oshaughnessy Market vs. Ab Global Bond | Oshaughnessy Market vs. Harding Loevner Global | Oshaughnessy Market vs. Ms Global Fixed |
| Dunham Emerging vs. Virtus High Yield | Dunham Emerging vs. Strategic Advisers Income | Dunham Emerging vs. Neuberger Berman Income | Dunham Emerging vs. Buffalo High Yield |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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