Correlation Between Dunham Small and Dunham Monthly
Can any of the company-specific risk be diversified away by investing in both Dunham Small 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 Small 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 Small Cap and Dunham Monthly Distribution, you can compare the effects of market volatilities on Dunham Small 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 Small with a short position of Dunham Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Small and Dunham Monthly.
Diversification Opportunities for Dunham Small and Dunham Monthly
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dunham and Dunham is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Small Cap 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 Small 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 Small Cap 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 Small i.e., Dunham Small and Dunham Monthly go up and down completely randomly.
Pair Corralation between Dunham Small and Dunham Monthly
Assuming the 90 days horizon Dunham Small Cap is expected to generate 7.21 times more return on investment than Dunham Monthly. However, Dunham Small is 7.21 times more volatile than Dunham Monthly Distribution. It trades about 0.22 of its potential returns per unit of risk. Dunham Monthly Distribution is currently generating about 0.3 per unit of risk. If you would invest 1,752 in Dunham Small Cap on May 1, 2025 and sell it today you would earn a total of 299.00 from holding Dunham Small Cap or generate 17.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Small Cap vs. Dunham Monthly Distribution
Performance |
| Timeline |
| Dunham Small Cap |
| Dunham Monthly Distr |
Dunham Small and Dunham Monthly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Small and Dunham Monthly
The main advantage of trading using opposite Dunham Small and Dunham Monthly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Small 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 Small vs. Artisan High Income | Dunham Small vs. Ab Bond Inflation | Dunham Small vs. Morningstar Defensive Bond | Dunham Small vs. Multisector Bond Sma |
| Dunham Monthly vs. Dunham Monthly Distribution | Dunham Monthly vs. Dunham Monthly Distribution | Dunham Monthly vs. Dunham International Stock | Dunham Monthly vs. Sierra Strategic Income |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |