Correlation Between Guidepath Conservative and Dunham Emerging
Can any of the company-specific risk be diversified away by investing in both Guidepath Conservative and Dunham Emerging 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 Guidepath Conservative and Dunham Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidepath Conservative Income and Dunham Emerging Markets, you can compare the effects of market volatilities on Guidepath Conservative and Dunham Emerging 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 Guidepath Conservative with a short position of Dunham Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath Conservative and Dunham Emerging.
Diversification Opportunities for Guidepath Conservative and Dunham Emerging
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guidepath and Dunham is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Conservative Income and Dunham Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Emerging Markets and Guidepath Conservative 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 Guidepath Conservative Income are associated (or correlated) with Dunham Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Emerging Markets has no effect on the direction of Guidepath Conservative i.e., Guidepath Conservative and Dunham Emerging go up and down completely randomly.
Pair Corralation between Guidepath Conservative and Dunham Emerging
Assuming the 90 days horizon Guidepath Conservative is expected to generate 5.23 times less return on investment than Dunham Emerging. But when comparing it to its historical volatility, Guidepath Conservative Income is 17.13 times less risky than Dunham Emerging. It trades about 0.44 of its potential returns per unit of risk. Dunham Emerging Markets is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,475 in Dunham Emerging Markets on June 9, 2025 and sell it today you would earn a total of 97.00 from holding Dunham Emerging Markets or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidepath Conservative Income vs. Dunham Emerging Markets
Performance |
| Timeline |
| Guidepath Conservative |
| Dunham Emerging Markets |
Guidepath Conservative and Dunham Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidepath Conservative and Dunham Emerging
The main advantage of trading using opposite Guidepath Conservative and Dunham Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidepath Conservative position performs unexpectedly, Dunham Emerging 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 Dunham Emerging will offset losses from the drop in Dunham Emerging's long position.| Guidepath Conservative vs. Mainstay High Yield | Guidepath Conservative vs. Msift High Yield | Guidepath Conservative vs. Calvert High Yield | Guidepath Conservative vs. Lord Abbett Short |
| Dunham Emerging vs. Dunham Dynamic Macro | Dunham Emerging vs. Dunham Appreciation Income | Dunham Emerging vs. Dunham Porategovernment Bond | Dunham Emerging vs. Dunham Small Cap |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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