Correlation Between Dunham Corporate/govern and Intermediate-term
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Intermediate-term 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 Intermediate-term 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 Intermediate Term Tax Free Bond, you can compare the effects of market volatilities on Dunham Corporate/govern and Intermediate-term 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 Intermediate-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Intermediate-term.
Diversification Opportunities for Dunham Corporate/govern and Intermediate-term
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dunham and Intermediate-term is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Intermediate Term Tax Free Bon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Term Tax 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 Intermediate-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Term Tax has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Intermediate-term go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Intermediate-term
Assuming the 90 days horizon Dunham Porategovernment Bond is expected to generate 1.77 times more return on investment than Intermediate-term. However, Dunham Corporate/govern is 1.77 times more volatile than Intermediate Term Tax Free Bond. It trades about 0.21 of its potential returns per unit of risk. Intermediate Term Tax Free Bond is currently generating about 0.18 per unit of risk. If you would invest 1,226 in Dunham Porategovernment Bond on June 6, 2025 and sell it today you would earn a total of 34.00 from holding Dunham Porategovernment Bond or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Porategovernment Bond vs. Intermediate Term Tax Free Bon
Performance |
| Timeline |
| Dunham Porategovernment |
| Intermediate Term Tax |
Dunham Corporate/govern and Intermediate-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Intermediate-term
The main advantage of trading using opposite Dunham Corporate/govern and Intermediate-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Intermediate-term 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 Intermediate-term will offset losses from the drop in Intermediate-term's long position.| Dunham Corporate/govern vs. Dunham Dynamic Macro | Dunham Corporate/govern vs. Dunham Appreciation Income | Dunham Corporate/govern vs. Dunham Small Cap | Dunham Corporate/govern vs. Dunham Emerging Markets |
| Intermediate-term vs. Ab Value Fund | Intermediate-term vs. Fabwx | Intermediate-term vs. Fkhemx | Intermediate-term vs. Abr 7525 Volatility |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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