Correlation Between Dunham Corporate/govern and Simt Tax-managed
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Simt Tax-managed 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 Simt Tax-managed 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 Simt Tax Managed Smallmid, you can compare the effects of market volatilities on Dunham Corporate/govern and Simt Tax-managed 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 Simt Tax-managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Simt Tax-managed.
Diversification Opportunities for Dunham Corporate/govern and Simt Tax-managed
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dunham and Simt is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Simt Tax Managed Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Tax Managed 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 Simt Tax-managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Tax Managed has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Simt Tax-managed go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Simt Tax-managed
Assuming the 90 days horizon Dunham Corporate/govern is expected to generate 7.59 times less return on investment than Simt Tax-managed. But when comparing it to its historical volatility, Dunham Porategovernment Bond is 4.5 times less risky than Simt Tax-managed. It trades about 0.15 of its potential returns per unit of risk. Simt Tax Managed Smallmid is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,978 in Simt Tax Managed Smallmid on April 20, 2025 and sell it today you would earn a total of 337.00 from holding Simt Tax Managed Smallmid or generate 17.04% 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. Simt Tax Managed Smallmid
Performance |
| Timeline |
| Dunham Porategovernment |
| Simt Tax Managed |
Dunham Corporate/govern and Simt Tax-managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Simt Tax-managed
The main advantage of trading using opposite Dunham Corporate/govern and Simt Tax-managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Simt Tax-managed 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 Simt Tax-managed will offset losses from the drop in Simt Tax-managed's long position.| Dunham Corporate/govern vs. Queens Road Small | Dunham Corporate/govern vs. Ab Discovery Value | Dunham Corporate/govern vs. Hennessy Nerstone Mid | Dunham Corporate/govern vs. Vanguard Small Cap Value |
| Simt Tax-managed vs. Dreyfus Large Cap | Simt Tax-managed vs. Qs Large Cap | Simt Tax-managed vs. Profunds Large Cap Growth | Simt Tax-managed vs. Guidemark Large 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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