Correlation Between Dunham Real and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Dunham Real and Harding Loevner 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 Harding Loevner 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 Harding Loevner Funds, you can compare the effects of market volatilities on Dunham Real and Harding Loevner 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 Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Harding Loevner.
Diversification Opportunities for Dunham Real and Harding Loevner
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dunham and Harding is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Harding Loevner Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Funds 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 Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Funds has no effect on the direction of Dunham Real i.e., Dunham Real and Harding Loevner go up and down completely randomly.
Pair Corralation between Dunham Real and Harding Loevner
Assuming the 90 days horizon Dunham Real Estate is expected to generate 1.12 times more return on investment than Harding Loevner. However, Dunham Real is 1.12 times more volatile than Harding Loevner Funds. It trades about 0.04 of its potential returns per unit of risk. Harding Loevner Funds is currently generating about 0.0 per unit of risk. If you would invest 1,176 in Dunham Real Estate on December 2, 2024 and sell it today you would earn a total of 232.00 from holding Dunham Real Estate or generate 19.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 91.31% |
Values | Daily Returns |
Dunham Real Estate vs. Harding Loevner Funds
Performance |
Timeline |
Dunham Real Estate |
Harding Loevner Funds |
Dunham Real and Harding Loevner Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dunham Real and Harding Loevner
The main advantage of trading using opposite Dunham Real and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Real position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.Dunham Real vs. John Hancock Financial | Dunham Real vs. Gabelli Global Financial | Dunham Real vs. Financials Ultrasector Profund | Dunham Real vs. Vanguard Financials Index |
Harding Loevner vs. Ultrasmall Cap Profund Ultrasmall Cap | Harding Loevner vs. T Rowe Price | Harding Loevner vs. T Rowe Price | Harding Loevner vs. Valic Company I |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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