Correlation Between Dunham High and Simt Large
Can any of the company-specific risk be diversified away by investing in both Dunham High and Simt Large 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 Simt Large 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 Simt Large Cap, you can compare the effects of market volatilities on Dunham High and Simt Large 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 Simt Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Simt Large.
Diversification Opportunities for Dunham High and Simt Large
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dunham and Simt is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Simt Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Large Cap 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 Simt Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Large Cap has no effect on the direction of Dunham High i.e., Dunham High and Simt Large go up and down completely randomly.
Pair Corralation between Dunham High and Simt Large
Assuming the 90 days horizon Dunham High is expected to generate 1.52 times less return on investment than Simt Large. But when comparing it to its historical volatility, Dunham High Yield is 3.7 times less risky than Simt Large. It trades about 0.15 of its potential returns per unit of risk. Simt Large Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,146 in Simt Large Cap on April 30, 2025 and sell it today you would earn a total of 603.00 from holding Simt Large Cap or generate 28.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Dunham High Yield vs. Simt Large Cap
Performance |
| Timeline |
| Dunham High Yield |
| Simt Large Cap |
Dunham High and Simt Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Simt Large
The main advantage of trading using opposite Dunham High and Simt Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham High position performs unexpectedly, Simt Large 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 Simt Large will offset losses from the drop in Simt Large's long position.| Dunham High vs. Virtus Real Estate | Dunham High vs. Global Real Estate | Dunham High vs. Goldman Sachs Real | Dunham High vs. Pender Real Estate |
| Simt Large vs. Simt Mid Cap | Simt Large vs. Sit Emerging Markets | Simt Large vs. Simt High Yield | Simt Large vs. Simt Multi Asset Accumulation |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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