Correlation Between Ivy Apollo and Dunham Real

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

By analyzing existing cross correlation between Ivy Apollo Multi Asset and Dunham Real Estate, you can compare the effects of market volatilities on Ivy Apollo 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 Ivy Apollo with a short position of Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivy Apollo and Dunham Real.

Diversification Opportunities for Ivy Apollo and Dunham Real

0.14

Correlation Coefficient

Ivy Apollo  Dunham Real

Average diversification

The 3 months correlation between Ivy and Dunham is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ivy Apollo Multi Asset 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 Ivy Apollo 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 Ivy Apollo Multi Asset 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 Ivy Apollo i.e., Ivy Apollo and Dunham Real go up and down completely randomly.

Pair Corralation between Ivy Apollo and Dunham Real

Assuming the 90 days horizon Ivy Apollo Multi Asset is expected to generate 0.47 times more return on investment than Dunham Real. However, Ivy Apollo Multi Asset is 2.13 times less risky than Dunham Real. It trades about 0.02 of its potential returns per unit of risk. Dunham Real Estate is currently generating about -0.06 per unit of risk. If you would invest  930.00  in Ivy Apollo Multi Asset on December 28, 2024 and sell it today you would earn a total of  6.00  from holding Ivy Apollo Multi Asset or generate 0.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Ivy Apollo Multi Asset  vs.  Dunham Real Estate

Ivy Apollo Multi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ivy Apollo Multi Asset are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ivy Apollo is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dunham Real Estate

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Ivy Apollo and Dunham Real

The main advantage of trading using opposite Ivy Apollo and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivy Apollo 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.

The idea behind Ivy Apollo Multi Asset and Dunham Real Estate 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.