Correlation Between Bio Rad and Dunham Appreciation

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

By analyzing existing cross correlation between Bio Rad Laboratories and Dunham Appreciation Income, you can compare the effects of market volatilities on Bio Rad and Dunham Appreciation 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 Bio Rad with a short position of Dunham Appreciation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Rad and Dunham Appreciation.

Diversification Opportunities for Bio Rad and Dunham Appreciation

0.71

Correlation Coefficient

Bio Rad  Dunham Appreciation

Poor diversification

The 3 months correlation between Bio and Dunham is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and Dunham Appreciation Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Appreciation and Bio Rad 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 Bio Rad Laboratories are associated (or correlated) with Dunham Appreciation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Appreciation has no effect on the direction of Bio Rad i.e., Bio Rad and Dunham Appreciation go up and down completely randomly.

Pair Corralation between Bio Rad and Dunham Appreciation

Considering the 90-day investment horizon Bio Rad Laboratories is expected to generate 25.64 times more return on investment than Dunham Appreciation. However, Bio Rad is 25.64 times more volatile than Dunham Appreciation Income. It trades about 0.13 of its potential returns per unit of risk. Dunham Appreciation Income is currently generating about -0.18 per unit of risk. If you would invest  29,038  in Bio Rad Laboratories on July 9, 2025 and sell it today you would earn a total of  1,879  from holding Bio Rad Laboratories or generate 6.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Bio Rad Laboratories  vs.  Dunham Appreciation Income

Bio Rad Laboratories

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Bio Rad Laboratories are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Bio Rad displayed solid returns over the last few months and may actually be approaching a breakup point.

Dunham Appreciation

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dunham Appreciation Income are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Dunham Appreciation is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bio Rad and Dunham Appreciation

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

The idea behind Bio Rad Laboratories and Dunham Appreciation Income 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.