Correlation Between Dunham High and Aqr Diversified
Can any of the company-specific risk be diversified away by investing in both Dunham High and Aqr Diversified 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 High and Aqr Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham High Yield and Aqr Diversified Arbitrage, you can compare the effects of market volatilities on Dunham High and Aqr Diversified 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 High with a short position of Aqr Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Aqr Diversified.
Diversification Opportunities for Dunham High and Aqr Diversified
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dunham and Aqr is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Aqr Diversified Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Diversified Arbitrage and Dunham High 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 High Yield are associated (or correlated) with Aqr Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Diversified Arbitrage has no effect on the direction of Dunham High i.e., Dunham High and Aqr Diversified go up and down completely randomly.
Pair Corralation between Dunham High and Aqr Diversified
Assuming the 90 days horizon Dunham High Yield is expected to generate 1.64 times more return on investment than Aqr Diversified. However, Dunham High is 1.64 times more volatile than Aqr Diversified Arbitrage. It trades about 0.46 of its potential returns per unit of risk. Aqr Diversified Arbitrage is currently generating about 0.25 per unit of risk. If you would invest 848.00 in Dunham High Yield on June 9, 2025 and sell it today you would earn a total of 33.00 from holding Dunham High Yield or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham High Yield vs. Aqr Diversified Arbitrage
Performance |
| Timeline |
| Dunham High Yield |
| Aqr Diversified Arbitrage |
Dunham High and Aqr Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Aqr Diversified
The main advantage of trading using opposite Dunham High and Aqr Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham High position performs unexpectedly, Aqr Diversified 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 Aqr Diversified will offset losses from the drop in Aqr Diversified's long position.| Dunham High vs. Dunham Dynamic Macro | Dunham High vs. Dunham Appreciation Income | Dunham High vs. Dunham Porategovernment Bond | Dunham High vs. Dunham Small Cap |
| Aqr Diversified vs. Aqr Large Cap | Aqr Diversified vs. Aqr Large Cap | Aqr Diversified vs. Aqr International Defensive | Aqr Diversified vs. Aqr International Defensive |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance |