Correlation Between Dunham Large and Allianzgi Nfj

Can any of the company-specific risk be diversified away by investing in both Dunham Large and Allianzgi Nfj 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 Large and Allianzgi Nfj into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dunham Large Cap and Allianzgi Nfj International, you can compare the effects of market volatilities on Dunham Large and Allianzgi Nfj 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 Large with a short position of Allianzgi Nfj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Large and Allianzgi Nfj.

Diversification Opportunities for Dunham Large and Allianzgi Nfj

0.27

Correlation Coefficient

Dunham Large  Allianzgi Nfj

Modest diversification

The 3 months correlation between Dunham and Allianzgi is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Large Cap and Allianzgi Nfj International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Intern and Dunham Large 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 Large Cap are associated (or correlated) with Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Intern has no effect on the direction of Dunham Large i.e., Dunham Large and Allianzgi Nfj go up and down completely randomly.

Pair Corralation between Dunham Large and Allianzgi Nfj

Assuming the 90 days horizon Dunham Large Cap is expected to under-perform the Allianzgi Nfj. In addition to that, Dunham Large is 1.85 times more volatile than Allianzgi Nfj International. It trades about -0.31 of its total potential returns per unit of risk. Allianzgi Nfj International is currently generating about -0.34 per unit of volatility. If you would invest  1,942  in Allianzgi Nfj International on October 6, 2024 and sell it today you would lose (101.00) from holding Allianzgi Nfj International or give up 5.2% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Dunham Large Cap  vs.  Allianzgi Nfj International

Dunham Large Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dunham Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Dunham Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Allianzgi Nfj Intern

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi Nfj International has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Dunham Large and Allianzgi Nfj

The main advantage of trading using opposite Dunham Large and Allianzgi Nfj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Large position performs unexpectedly, Allianzgi Nfj 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 Allianzgi Nfj will offset losses from the drop in Allianzgi Nfj's long position.

The idea behind Dunham Large Cap and Allianzgi Nfj International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.