Correlation Between Dunham International and Dunham Monthly
Can any of the company-specific risk be diversified away by investing in both Dunham International and Dunham Monthly 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 Monthly 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 Monthly Distribution, you can compare the effects of market volatilities on Dunham International and Dunham Monthly 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 Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham International and Dunham Monthly.
Diversification Opportunities for Dunham International and Dunham Monthly
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dunham and Dunham is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dunham International Stock and Dunham Monthly Distribution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Monthly Distr 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 Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Monthly Distr has no effect on the direction of Dunham International i.e., Dunham International and Dunham Monthly go up and down completely randomly.
Pair Corralation between Dunham International and Dunham Monthly
Assuming the 90 days horizon Dunham International Stock is expected to generate 5.75 times more return on investment than Dunham Monthly. However, Dunham International is 5.75 times more volatile than Dunham Monthly Distribution. It trades about 0.23 of its potential returns per unit of risk. Dunham Monthly Distribution is currently generating about 0.26 per unit of risk. If you would invest 1,808 in Dunham International Stock on June 11, 2025 and sell it today you would earn a total of 190.00 from holding Dunham International Stock or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Dunham International Stock vs. Dunham Monthly Distribution
Performance |
| Timeline |
| Dunham International |
| Dunham Monthly Distr |
Dunham International and Dunham Monthly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham International and Dunham Monthly
The main advantage of trading using opposite Dunham International and Dunham Monthly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham International position performs unexpectedly, Dunham Monthly 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 Monthly will offset losses from the drop in Dunham Monthly'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 Monthly vs. Dunham Dynamic Macro | Dunham Monthly vs. Dunham Appreciation Income | Dunham Monthly vs. Dunham Porategovernment Bond | Dunham Monthly 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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