Correlation Between Highland Global and Dunham Monthly
Can any of the company-specific risk be diversified away by investing in both Highland Global and Dunham Monthly 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 Highland Global and Dunham Monthly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highland Global Allocation and Dunham Monthly Distribution, you can compare the effects of market volatilities on Highland Global and Dunham Monthly 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 Highland Global with a short position of Dunham Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Global and Dunham Monthly.
Diversification Opportunities for Highland Global and Dunham Monthly
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Highland and Dunham is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Highland Global Allocation and Dunham Monthly Distribution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Monthly Distr and Highland Global 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 Highland Global Allocation are associated (or correlated) with Dunham Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Monthly Distr has no effect on the direction of Highland Global i.e., Highland Global and Dunham Monthly go up and down completely randomly.
Pair Corralation between Highland Global and Dunham Monthly
Given the investment horizon of 90 days Highland Global Allocation is expected to generate 6.08 times more return on investment than Dunham Monthly. However, Highland Global is 6.08 times more volatile than Dunham Monthly Distribution. It trades about 0.17 of its potential returns per unit of risk. Dunham Monthly Distribution is currently generating about 0.19 per unit of risk. If you would invest 831.00 in Highland Global Allocation on June 9, 2025 and sell it today you would earn a total of 49.00 from holding Highland Global Allocation or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highland Global Allocation vs. Dunham Monthly Distribution
Performance |
| Timeline |
| Highland Global Allo |
| Dunham Monthly Distr |
Highland Global and Dunham Monthly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Global and Dunham Monthly
The main advantage of trading using opposite Highland Global and Dunham Monthly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Global position performs unexpectedly, Dunham Monthly 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 Monthly will offset losses from the drop in Dunham Monthly's long position.| Highland Global vs. Highland Opportunities And | Highland Global vs. Clough Global Allocation | Highland Global vs. Aberdeen Income Credit | Highland Global vs. Rivernorth Opportunities |
| Dunham Monthly vs. Dunham Dynamic Macro | Dunham Monthly vs. Dunham Appreciation Income | Dunham Monthly vs. Dunham Porategovernment Bond | Dunham Monthly 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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