Correlation Between Dunham International and Guidepath Growth

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

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

Diversification Opportunities for Dunham International and Guidepath Growth

0.97

Correlation Coefficient

Dunham International  Guidepath Growth

Almost no diversification

The 3 months correlation between Dunham and Guidepath is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Dunham International Stock and Guidepath Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Growth And and Dunham International 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 International Stock are associated (or correlated) with Guidepath Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Growth And has no effect on the direction of Dunham International i.e., Dunham International and Guidepath Growth go up and down completely randomly.

Pair Corralation between Dunham International and Guidepath Growth

Assuming the 90 days horizon Dunham International Stock is expected to generate 0.99 times more return on investment than Guidepath Growth. However, Dunham International Stock is 1.01 times less risky than Guidepath Growth. It trades about 0.37 of its potential returns per unit of risk. Guidepath Growth And is currently generating about 0.2 per unit of risk. If you would invest  1,660  in Dunham International Stock on April 29, 2025 and sell it today you would earn a total of  241.00  from holding Dunham International Stock or generate 14.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Dunham International Stock  vs.  Guidepath Growth And

Dunham International

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Dunham International Stock are ranked lower than 29 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Dunham International showed solid returns over the last few months and may actually be approaching a breakup point.

Guidepath Growth And

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Growth And are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Guidepath Growth may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Dunham International and Guidepath Growth

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

The idea behind Dunham International Stock and Guidepath Growth And 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.