Correlation Between T Rowe and Dunham Focused
Can any of the company-specific risk be diversified away by investing in both T Rowe and Dunham Focused 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 T Rowe and Dunham Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rowe Price and Dunham Focused Large, you can compare the effects of market volatilities on T Rowe and Dunham Focused 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 T Rowe with a short position of Dunham Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rowe and Dunham Focused.
Diversification Opportunities for T Rowe and Dunham Focused
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TBLWX and Dunham is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding T Rowe Price and Dunham Focused Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Focused Large and T Rowe 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 T Rowe Price are associated (or correlated) with Dunham Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Focused Large has no effect on the direction of T Rowe i.e., T Rowe and Dunham Focused go up and down completely randomly.
Pair Corralation between T Rowe and Dunham Focused
Assuming the 90 days horizon T Rowe Price is expected to generate 0.45 times more return on investment than Dunham Focused. However, T Rowe Price is 2.22 times less risky than Dunham Focused. It trades about 0.2 of its potential returns per unit of risk. Dunham Focused Large is currently generating about 0.05 per unit of risk. If you would invest 1,071 in T Rowe Price on June 7, 2025 and sell it today you would earn a total of 56.00 from holding T Rowe Price or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Rowe Price vs. Dunham Focused Large
Performance |
| Timeline |
| T Rowe Price |
| Dunham Focused Large |
T Rowe and Dunham Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rowe and Dunham Focused
The main advantage of trading using opposite T Rowe and Dunham Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rowe position performs unexpectedly, Dunham Focused 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 Focused will offset losses from the drop in Dunham Focused's long position.| T Rowe vs. Deutsche Health And | T Rowe vs. Tekla Healthcare Investors | T Rowe vs. Prudential Health Sciences | T Rowe vs. Baron Health Care |
| Dunham Focused vs. Harding Loevner Emerging | Dunham Focused vs. Jpmorgan Emerging Markets | Dunham Focused vs. Pace International Emerging | Dunham Focused vs. Dodge Cox Emerging |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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