Correlation Between Saat Moderate and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Saat Moderate 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 Saat Moderate and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Moderate Strategy and Dunham Real Estate, you can compare the effects of market volatilities on Saat Moderate 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 Saat Moderate with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Dunham Real.
Diversification Opportunities for Saat Moderate and Dunham Real
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saat and Dunham is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy 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 Saat Moderate 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 Saat Moderate Strategy 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 Saat Moderate i.e., Saat Moderate and Dunham Real go up and down completely randomly.
Pair Corralation between Saat Moderate and Dunham Real
Assuming the 90 days horizon Saat Moderate Strategy is expected to generate 0.27 times more return on investment than Dunham Real. However, Saat Moderate Strategy is 3.7 times less risky than Dunham Real. It trades about -0.19 of its potential returns per unit of risk. Dunham Real Estate is currently generating about -0.3 per unit of risk. If you would invest 1,186 in Saat Moderate Strategy on September 26, 2024 and sell it today you would lose (14.00) from holding Saat Moderate Strategy or give up 1.18% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Saat Moderate Strategy vs. Dunham Real Estate
Performance |
Timeline |
Saat Moderate Strategy |
Dunham Real Estate |
Saat Moderate and Dunham Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saat Moderate and Dunham Real
The main advantage of trading using opposite Saat Moderate and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate 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.Saat Moderate vs. Simt Multi Asset Accumulation | Saat Moderate vs. Saat Market Growth | Saat Moderate vs. Simt Real Return | Saat Moderate vs. Simt Small Cap |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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