Correlation Between Ab Small and Dunham Emerging
Can any of the company-specific risk be diversified away by investing in both Ab Small 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 Ab Small and Dunham Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Small Cap and Dunham Emerging Markets, you can compare the effects of market volatilities on Ab Small 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 Ab Small with a short position of Dunham Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Small and Dunham Emerging.
Diversification Opportunities for Ab Small and Dunham Emerging
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QUAIX and Dunham is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ab Small Cap 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 Ab Small 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 Ab Small Cap 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 Ab Small i.e., Ab Small and Dunham Emerging go up and down completely randomly.
Pair Corralation between Ab Small and Dunham Emerging
Assuming the 90 days horizon Ab Small Cap is expected to generate 1.44 times more return on investment than Dunham Emerging. However, Ab Small is 1.44 times more volatile than Dunham Emerging Markets. It trades about 0.07 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 6,225 in Ab Small Cap on November 3, 2024 and sell it today you would earn a total of 1,449 from holding Ab Small Cap or generate 23.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ab Small Cap vs. Dunham Emerging Markets
Performance |
| Timeline |
| Ab Small Cap |
| Dunham Emerging Markets |
Ab Small and Dunham Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Small and Dunham Emerging
The main advantage of trading using opposite Ab Small and Dunham Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Small 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.| Ab Small vs. Rationalpier 88 Convertible | Ab Small vs. Blrc Sgy Mnp | Ab Small vs. Dreyfusstandish Global Fixed | Ab Small vs. Ambrus Core Bond |
| Dunham Emerging vs. The Hartford Healthcare | Dunham Emerging vs. Allianzgi Health Sciences | Dunham Emerging vs. Eventide Healthcare Life | Dunham Emerging vs. Highland Longshort Healthcare |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |