Correlation Between Dunham Real and Multifactor

Can any of the company-specific risk be diversified away by investing in both Dunham Real and Multifactor 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 Multifactor 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 Multifactor Equity Fund, you can compare the effects of market volatilities on Dunham Real and Multifactor 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 Multifactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Real and Multifactor.

Diversification Opportunities for Dunham Real and Multifactor

0.52

Correlation Coefficient

Dunham Real  Multifactor

Very weak diversification

The 3 months correlation between Dunham and Multifactor is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Real Estate and Multifactor Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multifactor Equity 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 Multifactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multifactor Equity has no effect on the direction of Dunham Real i.e., Dunham Real and Multifactor go up and down completely randomly.

Pair Corralation between Dunham Real and Multifactor

Assuming the 90 days horizon Dunham Real Estate is expected to under-perform the Multifactor. In addition to that, Dunham Real is 1.58 times more volatile than Multifactor Equity Fund. It trades about -0.01 of its total potential returns per unit of risk. Multifactor Equity Fund is currently generating about 0.18 per unit of volatility. If you would invest  1,560  in Multifactor Equity Fund on May 19, 2025 and sell it today you would earn a total of  123.00  from holding Multifactor Equity Fund or generate 7.88% return on investment over 90 days.

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

Dunham Real Estate  vs.  Multifactor Equity Fund

Dunham Real Estate

Risk-Adjusted Performance

Weakest

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.

Multifactor Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Multifactor Equity Fund are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Multifactor may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Dunham Real and Multifactor

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

The idea behind Dunham Real Estate and Multifactor Equity Fund 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.