Correlation Between Dunham International and Dunham Dynamic
Can any of the company-specific risk be diversified away by investing in both Dunham International and Dunham Dynamic 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 Dynamic 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 Dynamic Macro, you can compare the effects of market volatilities on Dunham International and Dunham Dynamic 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 Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham International and Dunham Dynamic.
Diversification Opportunities for Dunham International and Dunham Dynamic
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dunham and Dunham is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dunham International Stock and Dunham Dynamic Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Dynamic Macro 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 Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Dynamic Macro has no effect on the direction of Dunham International i.e., Dunham International and Dunham Dynamic go up and down completely randomly.
Pair Corralation between Dunham International and Dunham Dynamic
Assuming the 90 days horizon Dunham International Stock is expected to generate 3.9 times more return on investment than Dunham Dynamic. However, Dunham International is 3.9 times more volatile than Dunham Dynamic Macro. It trades about 0.29 of its potential returns per unit of risk. Dunham Dynamic Macro is currently generating about 0.12 per unit of risk. If you would invest 1,918 in Dunham International Stock on May 28, 2025 and sell it today you would earn a total of 253.00 from holding Dunham International Stock or generate 13.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Dunham International Stock vs. Dunham Dynamic Macro
Performance |
| Timeline |
| Dunham International |
| Dunham Dynamic Macro |
Dunham International and Dunham Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham International and Dunham Dynamic
The main advantage of trading using opposite Dunham International and Dunham Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham International position performs unexpectedly, Dunham Dynamic 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 Dynamic will offset losses from the drop in Dunham Dynamic'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 |
| Dunham Dynamic vs. Shelton Funds | Dunham Dynamic vs. Rbb Fund | Dunham Dynamic vs. Mh Elite Fund | Dunham Dynamic vs. Small Cap Stock |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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