Correlation Between Dunham Large and Calvert Bond
Can any of the company-specific risk be diversified away by investing in both Dunham Large and Calvert Bond 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 Large and Calvert Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Large Cap and Calvert Bond Portfolio, you can compare the effects of market volatilities on Dunham Large and Calvert Bond 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 Large with a short position of Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Large and Calvert Bond.
Diversification Opportunities for Dunham Large and Calvert Bond
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and Calvert is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Large Cap and Calvert Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Bond Portfolio and Dunham Large 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 Large Cap are associated (or correlated) with Calvert Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Bond Portfolio has no effect on the direction of Dunham Large i.e., Dunham Large and Calvert Bond go up and down completely randomly.
Pair Corralation between Dunham Large and Calvert Bond
Assuming the 90 days horizon Dunham Large Cap is expected to generate 2.1 times more return on investment than Calvert Bond. However, Dunham Large is 2.1 times more volatile than Calvert Bond Portfolio. It trades about 0.24 of its potential returns per unit of risk. Calvert Bond Portfolio is currently generating about 0.17 per unit of risk. If you would invest 1,958 in Dunham Large Cap on May 29, 2025 and sell it today you would earn a total of 171.00 from holding Dunham Large Cap or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Large Cap vs. Calvert Bond Portfolio
Performance |
| Timeline |
| Dunham Large Cap |
| Calvert Bond Portfolio |
Dunham Large and Calvert Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Large and Calvert Bond
The main advantage of trading using opposite Dunham Large and Calvert Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Large position performs unexpectedly, Calvert Bond 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 Calvert Bond will offset losses from the drop in Calvert Bond's long position.| Dunham Large vs. Dunham Dynamic Macro | Dunham Large vs. Dunham Appreciation Income | Dunham Large vs. Dunham Porategovernment Bond | Dunham Large vs. Dunham Small Cap |
| Calvert Bond vs. Investec Emerging Markets | Calvert Bond vs. Ab All Market | Calvert Bond vs. Doubleline Emerging Markets | Calvert Bond vs. Blackrock Emerging Markets |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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