Correlation Between Dunham International and Dunham Porategovernment
Can any of the company-specific risk be diversified away by investing in both Dunham International and Dunham Porategovernment 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 International and Dunham Porategovernment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham International Stock and Dunham Porategovernment Bond, you can compare the effects of market volatilities on Dunham International and Dunham Porategovernment 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 International with a short position of Dunham Porategovernment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham International and Dunham Porategovernment.
Diversification Opportunities for Dunham International and Dunham Porategovernment
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dunham and Dunham is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dunham International Stock and Dunham Porategovernment Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Porategovernment and Dunham International 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 International Stock are associated (or correlated) with Dunham Porategovernment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Porategovernment has no effect on the direction of Dunham International i.e., Dunham International and Dunham Porategovernment go up and down completely randomly.
Pair Corralation between Dunham International and Dunham Porategovernment
Assuming the 90 days horizon Dunham International Stock is expected to generate 4.54 times more return on investment than Dunham Porategovernment. However, Dunham International is 4.54 times more volatile than Dunham Porategovernment Bond. It trades about 0.03 of its potential returns per unit of risk. Dunham Porategovernment Bond is currently generating about 0.0 per unit of risk. If you would invest 1,965 in Dunham International Stock on April 30, 2025 and sell it today you would earn a total of 106.00 from holding Dunham International Stock or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham International Stock vs. Dunham Porategovernment Bond
Performance |
| Timeline |
| Dunham International |
| Dunham Porategovernment |
Dunham International and Dunham Porategovernment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham International and Dunham Porategovernment
The main advantage of trading using opposite Dunham International and Dunham Porategovernment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham International position performs unexpectedly, Dunham Porategovernment 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 Porategovernment will offset losses from the drop in Dunham Porategovernment's long position.| Dunham International vs. Dunham International Stock | Dunham International vs. Dunham Monthly Distribution | Dunham International vs. Dunham Large Cap | Dunham International vs. Dunham Focused Large |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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