Correlation Between Dunham Real and First Trust
Can any of the company-specific risk be diversified away by investing in both Dunham Real and First Trust 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 Real and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Real Estate and First Trust Short, you can compare the effects of market volatilities on Dunham Real and First Trust 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 Real with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and First Trust.
Diversification Opportunities for Dunham Real and First Trust
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dunham and First is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and First Trust Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Short and Dunham Real 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 Real Estate are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Short has no effect on the direction of Dunham Real i.e., Dunham Real and First Trust go up and down completely randomly.
Pair Corralation between Dunham Real and First Trust
Assuming the 90 days horizon Dunham Real Estate is expected to generate 13.31 times more return on investment than First Trust. However, Dunham Real is 13.31 times more volatile than First Trust Short. It trades about 0.12 of its potential returns per unit of risk. First Trust Short is currently generating about 0.51 per unit of risk. If you would invest 1,338 in Dunham Real Estate on April 3, 2025 and sell it today you would earn a total of 30.00 from holding Dunham Real Estate or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dunham Real Estate vs. First Trust Short
Performance |
| Timeline |
| Dunham Real Estate |
| First Trust Short |
Dunham Real and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Real and First Trust
The main advantage of trading using opposite Dunham Real and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Dunham Real vs. L Abbett Growth | Dunham Real vs. T Rowe Price | Dunham Real vs. Bbh Partner Fund | Dunham Real vs. T Rowe Price |
| First Trust vs. Redwood Real Estate | First Trust vs. Dunham Real Estate | First Trust vs. Dunham Real Estate | First Trust vs. Pender Real Estate |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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