Correlation Between Dreyfus/standish and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Dunham Real 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 Dreyfus/standish and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfusstandish Global Fixed and Dunham Real Estate, you can compare the effects of market volatilities on Dreyfus/standish and Dunham Real 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 Dreyfus/standish with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Dunham Real.
Diversification Opportunities for Dreyfus/standish and Dunham Real
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dreyfus/standish and Dunham is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Dunham Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Real Estate and Dreyfus/standish 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 Dreyfusstandish Global Fixed are associated (or correlated) with Dunham Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Real Estate has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Dunham Real go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Dunham Real
Assuming the 90 days horizon Dreyfus/standish is expected to generate 1.87 times less return on investment than Dunham Real. But when comparing it to its historical volatility, Dreyfusstandish Global Fixed is 4.46 times less risky than Dunham Real. It trades about 0.12 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,275 in Dunham Real Estate on November 3, 2024 and sell it today you would earn a total of 112.00 from holding Dunham Real Estate or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Dunham Real Estate
Performance |
| Timeline |
| Dreyfusstandish Global |
| Dunham Real Estate |
Dreyfus/standish and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Dunham Real
The main advantage of trading using opposite Dreyfus/standish and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Dunham Real 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 Real will offset losses from the drop in Dunham Real's long position.| Dreyfus/standish vs. Blackstone Secured Lending | Dreyfus/standish vs. Mesirow Financial Small | Dreyfus/standish vs. Prudential Financial Services | Dreyfus/standish vs. Goldman Sachs Financial |
| Dunham Real vs. Rational Dividend Capture | Dunham Real vs. Fznopx | Dunham Real vs. Arrow Managed Futures | Dunham Real vs. Fbjygx |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |