Correlation Between Payden Us and Dunham Corporate/govern
Can any of the company-specific risk be diversified away by investing in both Payden Us and Dunham Corporate/govern 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 Payden Us and Dunham Corporate/govern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payden Government Fund and Dunham Porategovernment Bond, you can compare the effects of market volatilities on Payden Us and Dunham Corporate/govern 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 Payden Us with a short position of Dunham Corporate/govern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden Us and Dunham Corporate/govern.
Diversification Opportunities for Payden Us and Dunham Corporate/govern
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Payden and Dunham is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Payden Government Fund and Dunham Porategovernment Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Porategovernment and Payden Us 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 Payden Government Fund are associated (or correlated) with Dunham Corporate/govern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Porategovernment has no effect on the direction of Payden Us i.e., Payden Us and Dunham Corporate/govern go up and down completely randomly.
Pair Corralation between Payden Us and Dunham Corporate/govern
Assuming the 90 days horizon Payden Us is expected to generate 2.65 times less return on investment than Dunham Corporate/govern. But when comparing it to its historical volatility, Payden Government Fund is 1.78 times less risky than Dunham Corporate/govern. It trades about 0.08 of its potential returns per unit of risk. Dunham Porategovernment Bond is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,243 in Dunham Porategovernment Bond on November 1, 2024 and sell it today you would earn a total of 7.00 from holding Dunham Porategovernment Bond or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Payden Government Fund vs. Dunham Porategovernment Bond
Performance |
| Timeline |
| Payden Government |
| Dunham Porategovernment |
Payden Us and Dunham Corporate/govern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payden Us and Dunham Corporate/govern
The main advantage of trading using opposite Payden Us and Dunham Corporate/govern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden Us position performs unexpectedly, Dunham Corporate/govern 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 Corporate/govern will offset losses from the drop in Dunham Corporate/govern's long position.| Payden Us vs. Ab Bond Inflation | Payden Us vs. Dreyfusstandish Global Fixed | Payden Us vs. Old Westbury Fixed | Payden Us vs. Bbh Intermediate Municipal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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