Correlation Between Strategic Allocation and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Strategic Allocation 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 Strategic Allocation and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Allocation Moderate and Dunham Real Estate, you can compare the effects of market volatilities on Strategic Allocation 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 Strategic Allocation with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Allocation and Dunham Real.
Diversification Opportunities for Strategic Allocation and Dunham Real
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Strategic and Dunham is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Allocation Moderate 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 Strategic Allocation 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 Strategic Allocation Moderate 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 Strategic Allocation i.e., Strategic Allocation and Dunham Real go up and down completely randomly.
Pair Corralation between Strategic Allocation and Dunham Real
Assuming the 90 days horizon Strategic Allocation Moderate is expected to generate 0.85 times more return on investment than Dunham Real. However, Strategic Allocation Moderate is 1.18 times less risky than Dunham Real. It trades about -0.33 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 686.00 in Strategic Allocation Moderate on September 26, 2024 and sell it today you would lose (44.00) from holding Strategic Allocation Moderate or give up 6.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Strategic Allocation Moderate vs. Dunham Real Estate
Performance |
Timeline |
Strategic Allocation |
Dunham Real Estate |
Strategic Allocation and Dunham Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Strategic Allocation and Dunham Real
The main advantage of trading using opposite Strategic Allocation and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Allocation 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.Strategic Allocation vs. One Choice Portfolio | Strategic Allocation vs. One Choice Portfolio | Strategic Allocation vs. One Choice Portfolio | Strategic Allocation vs. One Choice Portfolio |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |