Correlation Between William Blair and Dunham Small
Can any of the company-specific risk be diversified away by investing in both William Blair and Dunham Small 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 William Blair and Dunham Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between William Blair Small and Dunham Small Cap, you can compare the effects of market volatilities on William Blair and Dunham Small 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 William Blair with a short position of Dunham Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of William Blair and Dunham Small.
Diversification Opportunities for William Blair and Dunham Small
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between William and Dunham is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding William Blair Small and Dunham Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Small Cap and William Blair 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 William Blair Small are associated (or correlated) with Dunham Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Small Cap has no effect on the direction of William Blair i.e., William Blair and Dunham Small go up and down completely randomly.
Pair Corralation between William Blair and Dunham Small
Assuming the 90 days horizon William Blair Small is expected to under-perform the Dunham Small. In addition to that, William Blair is 1.09 times more volatile than Dunham Small Cap. It trades about -0.36 of its total potential returns per unit of risk. Dunham Small Cap is currently generating about -0.13 per unit of volatility. If you would invest 2,122 in Dunham Small Cap on October 8, 2024 and sell it today you would lose (67.00) from holding Dunham Small Cap or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
William Blair Small vs. Dunham Small Cap
Performance |
| Timeline |
| William Blair Small |
| Dunham Small Cap |
William Blair and Dunham Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with William Blair and Dunham Small
The main advantage of trading using opposite William Blair and Dunham Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if William Blair position performs unexpectedly, Dunham Small 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 Small will offset losses from the drop in Dunham Small's long position.| William Blair vs. Franklin Government Money | William Blair vs. Pioneer Amt Free Municipal | William Blair vs. Transamerica Intermediate Muni | William Blair vs. Baird Quality Intermediate |
| Dunham Small vs. World Precious Minerals | Dunham Small vs. The Gold Bullion | Dunham Small vs. Franklin Gold Precious | Dunham Small vs. Gabelli Gold Fund |
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 CEOs Directory module to screen CEOs from public companies around the world.
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