Correlation Between Wmcanx and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Wmcanx 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 Wmcanx and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wmcanx and Dunham Real Estate, you can compare the effects of market volatilities on Wmcanx 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 Wmcanx with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wmcanx and Dunham Real.
Diversification Opportunities for Wmcanx and Dunham Real
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wmcanx and Dunham is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Wmcanx 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 Wmcanx 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 Wmcanx 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 Wmcanx i.e., Wmcanx and Dunham Real go up and down completely randomly.
Pair Corralation between Wmcanx and Dunham Real
Assuming the 90 days trading horizon Wmcanx is expected to generate 0.64 times more return on investment than Dunham Real. However, Wmcanx is 1.56 times less risky than Dunham Real. It trades about 0.17 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.05 per unit of risk. If you would invest 1,662 in Wmcanx on November 3, 2024 and sell it today you would earn a total of 43.00 from holding Wmcanx or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 8.91% |
| Values | Daily Returns |
Wmcanx vs. Dunham Real Estate
Performance |
| Timeline |
| Wmcanx |
| Dunham Real Estate |
Wmcanx and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wmcanx and Dunham Real
The main advantage of trading using opposite Wmcanx and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wmcanx 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.| Wmcanx vs. Fulcrum Diversified Absolute | Wmcanx vs. Madison Diversified Income | Wmcanx vs. American Funds Conservative | Wmcanx vs. Wealthbuilder Conservative Allocation |
| Dunham Real vs. Angel Oak Multi Strategy | Dunham Real vs. Siit Emerging Markets | Dunham Real vs. Ashmore Emerging Markets | Dunham Real vs. Artisan Developing World |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |