Correlation Between Aqr Diversified and Dunham High
Can any of the company-specific risk be diversified away by investing in both Aqr Diversified and Dunham High 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 Aqr Diversified and Dunham High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Diversified Arbitrage and Dunham High Yield, you can compare the effects of market volatilities on Aqr Diversified and Dunham High 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 Aqr Diversified with a short position of Dunham High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Diversified and Dunham High.
Diversification Opportunities for Aqr Diversified and Dunham High
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aqr and Dunham is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Diversified Arbitrage and Dunham High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham High Yield and Aqr Diversified 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 Aqr Diversified Arbitrage are associated (or correlated) with Dunham High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham High Yield has no effect on the direction of Aqr Diversified i.e., Aqr Diversified and Dunham High go up and down completely randomly.
Pair Corralation between Aqr Diversified and Dunham High
Assuming the 90 days horizon Aqr Diversified Arbitrage is expected to under-perform the Dunham High. In addition to that, Aqr Diversified is 1.28 times more volatile than Dunham High Yield. It trades about -0.15 of its total potential returns per unit of risk. Dunham High Yield is currently generating about 0.22 per unit of volatility. If you would invest 885.00 in Dunham High Yield on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Dunham High Yield or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Diversified Arbitrage vs. Dunham High Yield
Performance |
| Timeline |
| Aqr Diversified Arbitrage |
| Dunham High Yield |
Aqr Diversified and Dunham High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Diversified and Dunham High
The main advantage of trading using opposite Aqr Diversified and Dunham High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Diversified position performs unexpectedly, Dunham High 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 High will offset losses from the drop in Dunham High's long position.| Aqr Diversified vs. Sit Government Securities | Aqr Diversified vs. Dunham Porategovernment Bond | Aqr Diversified vs. Intermediate Government Bond | Aqr Diversified vs. Lord Abbett Government |
| Dunham High vs. Fulcrum Diversified Absolute | Dunham High vs. Wealthbuilder Conservative Allocation | Dunham High vs. Aqr Diversified Arbitrage | Dunham High vs. Allianzgi Diversified Income |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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