Correlation Between Ab Value and Dunham Floating
Can any of the company-specific risk be diversified away by investing in both Ab Value and Dunham Floating 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 Ab Value and Dunham Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Value Fund and Dunham Floating Rate, you can compare the effects of market volatilities on Ab Value and Dunham Floating 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 Ab Value with a short position of Dunham Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Value and Dunham Floating.
Diversification Opportunities for Ab Value and Dunham Floating
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ABVCX and Dunham is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ab Value Fund and Dunham Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Floating Rate and Ab Value 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 Ab Value Fund are associated (or correlated) with Dunham Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Floating Rate has no effect on the direction of Ab Value i.e., Ab Value and Dunham Floating go up and down completely randomly.
Pair Corralation between Ab Value and Dunham Floating
Assuming the 90 days horizon Ab Value Fund is expected to generate 10.7 times more return on investment than Dunham Floating. However, Ab Value is 10.7 times more volatile than Dunham Floating Rate. It trades about 0.31 of its potential returns per unit of risk. Dunham Floating Rate is currently generating about 0.56 per unit of risk. If you would invest 1,811 in Ab Value Fund on June 11, 2025 and sell it today you would earn a total of 63.00 from holding Ab Value Fund or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Value Fund vs. Dunham Floating Rate
Performance |
| Timeline |
| Ab Value Fund |
| Dunham Floating Rate |
Ab Value and Dunham Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Value and Dunham Floating
The main advantage of trading using opposite Ab Value and Dunham Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Value position performs unexpectedly, Dunham Floating 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 Floating will offset losses from the drop in Dunham Floating's long position.The idea behind Ab Value Fund and Dunham Floating Rate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Dunham Floating vs. Tiaa Cref Lifestyle Conservative | Dunham Floating vs. Tax Free Conservative Income | Dunham Floating vs. Lord Abbett Diversified | Dunham Floating vs. Aqr Diversified Arbitrage |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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