Correlation Between Dunham Emerging and Long Term
Can any of the company-specific risk be diversified away by investing in both Dunham Emerging and Long 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 Emerging and Long Term 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 Long Term Government Fund, you can compare the effects of market volatilities on Dunham Emerging and Long 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 Emerging with a short position of Long Term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Emerging and Long Term.
Diversification Opportunities for Dunham Emerging and Long Term
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dunham and Long is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Emerging Markets and Long Term Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Term Government 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 Long Term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Term Government has no effect on the direction of Dunham Emerging i.e., Dunham Emerging and Long Term go up and down completely randomly.
Pair Corralation between Dunham Emerging and Long Term
Assuming the 90 days horizon Dunham Emerging Markets is expected to generate 1.02 times more return on investment than Long Term. However, Dunham Emerging is 1.02 times more volatile than Long Term Government Fund. It trades about 0.26 of its potential returns per unit of risk. Long Term Government Fund is currently generating about -0.01 per unit of risk. If you would invest 1,406 in Dunham Emerging Markets on April 24, 2025 and sell it today you would earn a total of 172.00 from holding Dunham Emerging Markets or generate 12.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Emerging Markets vs. Long Term Government Fund
Performance |
| Timeline |
| Dunham Emerging Markets |
| Long Term Government |
Dunham Emerging and Long Term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Emerging and Long Term
The main advantage of trading using opposite Dunham Emerging and Long Term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Emerging position performs unexpectedly, Long 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 Long Term will offset losses from the drop in Long Term's long position.| Dunham Emerging vs. Guggenheim Risk Managed | Dunham Emerging vs. Fidelity Real Estate | Dunham Emerging vs. Rems Real Estate | Dunham Emerging vs. Great West Real Estate |
| Long Term vs. Western Asset Short | Long Term vs. Oakhurst Short Duration | Long Term vs. The Short Term Municipal | Long Term vs. Ultra Short Term Fixed |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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