Correlation Between Dunham Real and Aam/phocas Real

Can any of the company-specific risk be diversified away by investing in both Dunham Real and Aam/phocas 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 Dunham Real and Aam/phocas Real 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 Aamphocas Real Estate, you can compare the effects of market volatilities on Dunham Real and Aam/phocas 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 Dunham Real with a short position of Aam/phocas Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Aam/phocas Real.

Diversification Opportunities for Dunham Real and Aam/phocas Real

0.0

Correlation Coefficient

Dunham Real  Aam/phocas Real

Pay attention - limited upside

The 3 months correlation between Dunham and Aam/phocas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Aamphocas Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aamphocas Real Estate 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 Aam/phocas Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aamphocas Real Estate has no effect on the direction of Dunham Real i.e., Dunham Real and Aam/phocas Real go up and down completely randomly.

Pair Corralation between Dunham Real and Aam/phocas Real

If you would invest  1,263  in Dunham Real Estate on February 20, 2024 and sell it today you would earn a total of  86.00  from holding Dunham Real Estate or generate 6.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Dunham Real Estate  vs.  Aamphocas Real Estate

Dunham Real Estate

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dunham Real Estate are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Dunham Real is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Aamphocas Real Estate

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Aamphocas Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Aam/phocas 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 Dunham Real and Aam/phocas Real

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

The idea behind Dunham Real Estate and Aamphocas 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.