Correlation Between Dunham Large and Mid-cap Value
Can any of the company-specific risk be diversified away by investing in both Dunham Large and Mid-cap Value 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 Mid-cap Value 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 Mid Cap Value Profund, you can compare the effects of market volatilities on Dunham Large and Mid-cap Value 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 Mid-cap Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Large and Mid-cap Value.
Diversification Opportunities for Dunham Large and Mid-cap Value
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dunham and Mid-cap is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Large Cap and Mid Cap Value Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Value 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 Mid-cap Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Value has no effect on the direction of Dunham Large i.e., Dunham Large and Mid-cap Value go up and down completely randomly.
Pair Corralation between Dunham Large and Mid-cap Value
Assuming the 90 days horizon Dunham Large is expected to generate 1.16 times less return on investment than Mid-cap Value. But when comparing it to its historical volatility, Dunham Large Cap is 1.68 times less risky than Mid-cap Value. It trades about 0.2 of its potential returns per unit of risk. Mid Cap Value Profund is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 11,067 in Mid Cap Value Profund on June 8, 2025 and sell it today you would earn a total of 935.00 from holding Mid Cap Value Profund or generate 8.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Large Cap vs. Mid Cap Value Profund
Performance |
| Timeline |
| Dunham Large Cap |
| Mid Cap Value |
Dunham Large and Mid-cap Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Large and Mid-cap Value
The main advantage of trading using opposite Dunham Large and Mid-cap Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Large position performs unexpectedly, Mid-cap Value 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 Mid-cap Value will offset losses from the drop in Mid-cap Value'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 |
| Mid-cap Value vs. Gabelli Convertible And | Mid-cap Value vs. Allianzgi Convertible Income | Mid-cap Value vs. Absolute Convertible Arbitrage | Mid-cap Value vs. Lord Abbett Convertible |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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