Correlation Between Dunham Emerging and Blackrock Emerging
Can any of the company-specific risk be diversified away by investing in both Dunham Emerging and Blackrock Emerging 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 Emerging and Blackrock Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Emerging Markets and Blackrock Emerging Markets, you can compare the effects of market volatilities on Dunham Emerging and Blackrock Emerging 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 Emerging with a short position of Blackrock Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Emerging and Blackrock Emerging.
Diversification Opportunities for Dunham Emerging and Blackrock Emerging
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dunham and Blackrock is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Emerging Markets and Blackrock Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Emerging and Dunham Emerging 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 Emerging Markets are associated (or correlated) with Blackrock Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Emerging has no effect on the direction of Dunham Emerging i.e., Dunham Emerging and Blackrock Emerging go up and down completely randomly.
Pair Corralation between Dunham Emerging and Blackrock Emerging
Assuming the 90 days horizon Dunham Emerging is expected to generate 1.11 times less return on investment than Blackrock Emerging. But when comparing it to its historical volatility, Dunham Emerging Markets is 1.07 times less risky than Blackrock Emerging. It trades about 0.12 of its potential returns per unit of risk. Blackrock Emerging Markets is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,369 in Blackrock Emerging Markets on March 28, 2025 and sell it today you would earn a total of 258.00 from holding Blackrock Emerging Markets or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Emerging Markets vs. Blackrock Emerging Markets
Performance |
| Timeline |
| Dunham Emerging Markets |
| Blackrock Emerging |
Dunham Emerging and Blackrock Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Emerging and Blackrock Emerging
The main advantage of trading using opposite Dunham Emerging and Blackrock Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Emerging position performs unexpectedly, Blackrock Emerging 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 Blackrock Emerging will offset losses from the drop in Blackrock Emerging's long position.| Dunham Emerging vs. Invesco Global Health | Dunham Emerging vs. Deutsche Health And | Dunham Emerging vs. Tekla Healthcare Investors | Dunham Emerging vs. Hartford Healthcare Hls |
| Blackrock Emerging vs. Mfs Lifetime Retirement | Blackrock Emerging vs. Fidelity Managed Retirement | Blackrock Emerging vs. Tiaa Cref Lifestyle Moderate | Blackrock Emerging vs. Voya Retirement Growth |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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