Correlation Between Simt Real and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Simt Real 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 Simt Real and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Real Estate and Dunham Real Estate, you can compare the effects of market volatilities on Simt Real 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 Simt Real with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Real and Dunham Real.
Diversification Opportunities for Simt Real and Dunham Real
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and DUNHAM is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Simt Real Estate 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 Simt Real 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 Simt Real Estate 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 Simt Real i.e., Simt Real and Dunham Real go up and down completely randomly.
Pair Corralation between Simt Real and Dunham Real
Assuming the 90 days horizon Simt Real Estate is expected to generate 1.02 times more return on investment than Dunham Real. However, Simt Real is 1.02 times more volatile than Dunham Real Estate. It trades about 0.09 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.03 per unit of risk. If you would invest 1,730 in Simt Real Estate on August 28, 2024 and sell it today you would earn a total of 56.00 from holding Simt Real Estate or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Real Estate vs. Dunham Real Estate
Performance |
| Timeline |
| Simt Real Estate |
| Dunham Real Estate |
Simt Real and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Real and Dunham Real
The main advantage of trading using opposite Simt Real and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Real 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.| Simt Real vs. Realty Income | Simt Real vs. Dynex Capital | Simt Real vs. First Industrial Realty | Simt Real vs. Healthcare Realty Trust |
| Dunham Real vs. Morgan Stanley Global | Dunham Real vs. T Rowe Price | Dunham Real vs. Wisdomtree Siegel Global | Dunham Real vs. Scharf Global Opportunity |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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