Correlation Between Dunham Corporate/govern and Dunham Small
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Dunham Small 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 Dunham Corporate/govern and Dunham Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Porategovernment Bond and Dunham Small Cap, you can compare the effects of market volatilities on Dunham Corporate/govern and Dunham Small 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 Dunham Corporate/govern with a short position of Dunham Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Dunham Small.
Diversification Opportunities for Dunham Corporate/govern and Dunham Small
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dunham and Dunham is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Dunham Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Small Cap and Dunham Corporate/govern 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 Dunham Porategovernment Bond are associated (or correlated) with Dunham Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Small Cap has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Dunham Small go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Dunham Small
Assuming the 90 days horizon Dunham Corporate/govern is expected to generate 2.45 times less return on investment than Dunham Small. But when comparing it to its historical volatility, Dunham Porategovernment Bond is 5.32 times less risky than Dunham Small. It trades about 0.2 of its potential returns per unit of risk. Dunham Small Cap is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,807 in Dunham Small Cap on June 7, 2025 and sell it today you would earn a total of 114.00 from holding Dunham Small Cap or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Porategovernment Bond vs. Dunham Small Cap
Performance |
| Timeline |
| Dunham Porategovernment |
| Dunham Small Cap |
Dunham Corporate/govern and Dunham Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Dunham Small
The main advantage of trading using opposite Dunham Corporate/govern and Dunham Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Dunham Small 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 Small will offset losses from the drop in Dunham Small's long position.| Dunham Corporate/govern vs. Voya Government Money | Dunham Corporate/govern vs. Rbc Money Market | Dunham Corporate/govern vs. Vanguard Money Market | Dunham Corporate/govern vs. Edward Jones Money |
| Dunham Small vs. Dunham Dynamic Macro | Dunham Small vs. Dunham Appreciation Income | Dunham Small vs. Dunham Porategovernment Bond | Dunham Small vs. Dunham Small Cap |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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