Correlation Between Investec Emerging and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Investec Emerging 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 Investec Emerging and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Dunham Real Estate, you can compare the effects of market volatilities on Investec Emerging 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 Investec Emerging with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Dunham Real.
Diversification Opportunities for Investec Emerging and Dunham Real
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Investec and Dunham is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets 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 Investec Emerging 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 Investec Emerging Markets 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 Investec Emerging i.e., Investec Emerging and Dunham Real go up and down completely randomly.
Pair Corralation between Investec Emerging and Dunham Real
Assuming the 90 days horizon Investec Emerging Markets is expected to generate 0.96 times more return on investment than Dunham Real. However, Investec Emerging Markets is 1.05 times less risky than Dunham Real. It trades about 0.04 of its potential returns per unit of risk. Dunham Real Estate is currently generating about -0.27 per unit of risk. If you would invest 1,072 in Investec Emerging Markets on September 22, 2024 and sell it today you would earn a total of 9.00 from holding Investec Emerging Markets or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Emerging Markets vs. Dunham Real Estate
Performance |
| Timeline |
| Investec Emerging Markets |
| Dunham Real Estate |
Investec Emerging and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Dunham Real
The main advantage of trading using opposite Investec Emerging and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging 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.| Investec Emerging vs. Guggenheim High Yield | Investec Emerging vs. Siit High Yield | Investec Emerging vs. Msift High Yield | Investec Emerging vs. Virtus High Yield |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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