Correlation Between Df Dent and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Df Dent and Dunham Real 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 Df Dent and Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Df Dent Midcap and Dunham Real Estate, you can compare the effects of market volatilities on Df Dent and Dunham Real 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 Df Dent with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Df Dent and Dunham Real.
Diversification Opportunities for Df Dent and Dunham Real
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between DFMGX and Dunham is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Df Dent Midcap and Dunham Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Real Estate and Df Dent 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 Df Dent Midcap are associated (or correlated) with Dunham Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Real Estate has no effect on the direction of Df Dent i.e., Df Dent and Dunham Real go up and down completely randomly.
Pair Corralation between Df Dent and Dunham Real
Assuming the 90 days horizon Df Dent Midcap is expected to generate 1.12 times more return on investment than Dunham Real. However, Df Dent is 1.12 times more volatile than Dunham Real Estate. It trades about 0.12 of its potential returns per unit of risk. Dunham Real Estate is currently generating about -0.03 per unit of risk. If you would invest 3,670 in Df Dent Midcap on September 14, 2024 and sell it today you would earn a total of 246.00 from holding Df Dent Midcap or generate 6.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Df Dent Midcap vs. Dunham Real Estate
Performance |
Timeline |
Df Dent Midcap |
Dunham Real Estate |
Df Dent and Dunham Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Df Dent and Dunham Real
The main advantage of trading using opposite Df Dent and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Df Dent position performs unexpectedly, Dunham Real 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 Real will offset losses from the drop in Dunham Real's long position.Df Dent vs. Dunham Real Estate | Df Dent vs. Redwood Real Estate | Df Dent vs. Fidelity Real Estate | Df Dent vs. Forum Real Estate |
Dunham Real vs. Realty Income | Dunham Real vs. Dynex Capital | Dunham Real vs. First Industrial Realty | Dunham Real vs. Healthcare Realty Trust |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Positions Ratings 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 |