Correlation Between Swan Defined and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Swan Defined 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 Swan Defined and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swan Defined Risk and Dunham Real Estate, you can compare the effects of market volatilities on Swan Defined 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 Swan Defined with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swan Defined and Dunham Real.
Diversification Opportunities for Swan Defined and Dunham Real
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Swan and Dunham is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Swan Defined Risk 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 Swan Defined 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 Swan Defined Risk 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 Swan Defined i.e., Swan Defined and Dunham Real go up and down completely randomly.
Pair Corralation between Swan Defined and Dunham Real
Assuming the 90 days horizon Swan Defined is expected to generate 3.01 times less return on investment than Dunham Real. But when comparing it to its historical volatility, Swan Defined Risk is 1.71 times less risky than Dunham Real. It trades about 0.08 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,462 in Dunham Real Estate on September 14, 2024 and sell it today you would earn a total of 28.00 from holding Dunham Real Estate or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swan Defined Risk vs. Dunham Real Estate
Performance |
| Timeline |
| Swan Defined Risk |
| Dunham Real Estate |
Swan Defined and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swan Defined and Dunham Real
The main advantage of trading using opposite Swan Defined and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swan Defined 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.| Swan Defined vs. Dunham Real Estate | Swan Defined vs. Simt Real Estate | Swan Defined vs. Redwood Real Estate | Swan Defined vs. Neuberger Berman Real |
| Dunham Real vs. Realty Income | Dunham Real vs. Dynex Capital | Dunham Real vs. First Industrial Realty | Dunham Real vs. Healthcare Realty Trust |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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