Direct Line Correlations

DLG Stock

267.00 5.20 1.99%

The current 90-days correlation between Direct Line Insurance and Games Workshop Group is 0.12 (i.e., Average diversification). The correlation of Direct Line is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Direct Line Correlation With Market

Good diversification

The correlation between Direct Line Insurance and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Direct Line Insurance and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Direct Line could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Direct Line when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Direct Line - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Direct Line Insurance to buy it.

Moving together with Direct Stock

0.62	TYT	Toyota Motor Corp	Pair Corr
0.73	DEC	Diversified Energy	Pair Corr
0.65	CPG	Compass Group PLC	Pair Corr
0.86	BRFI	BlackRock Frontiers	Pair Corr
0.86	0N7I	Cairo Communication SpA	Pair Corr
0.64	MNKS	Monks Investment Trust	Pair Corr
0.85	0MJK	Erste Group Bank	Pair Corr
0.76	0R1W	Walmart	Pair Corr

Moving against Direct Stock

0.77	SMSD	Samsung Electronics Earnings Call This Week	Pair Corr
0.7	SMSN	Samsung Electronics Earnings Call This Week	Pair Corr
0.55	RIGD	Reliance Industries	Pair Corr
0.36	SBID	State Bank	Pair Corr

Related Correlations Analysis

	GAW	AUTO	0R8Q	IGSU	PABE	AEO	JLEN	BKCG	MTEC	0KXO
GAW		-0.23	-0.5	0.17	-0.4	0.32	-0.68	0.62	0.77	0.89	GAW
AUTO	-0.23		0.56	0.48	0.73	-0.17	0.72	-0.33	-0.63	-0.17	AUTO
0R8Q	-0.5	0.56		0.08	0.59	-0.19	0.69	-0.65	-0.65	-0.32	0R8Q
IGSU	0.17	0.48	0.08		0.68	-0.04	0.38	0.33	-0.31	0.04	IGSU
PABE	-0.4	0.73	0.59	0.68		-0.09	0.83	-0.36	-0.74	-0.41	PABE
AEO	0.32	-0.17	-0.19	-0.04	-0.09		-0.32	0.27	0.26	0.35	AEO
JLEN	-0.68	0.72	0.69	0.38	0.83	-0.32		-0.53	-0.88	-0.62	JLEN
BKCG	0.62	-0.33	-0.65	0.33	-0.36	0.27	-0.53		0.48	0.53	BKCG
MTEC	0.77	-0.63	-0.65	-0.31	-0.74	0.26	-0.88	0.48		0.76	MTEC
0KXO	0.89	-0.17	-0.32	0.04	-0.41	0.35	-0.62	0.53	0.76		0KXO
	GAW	AUTO	0R8Q	IGSU	PABE	AEO	JLEN	BKCG	MTEC	0KXO

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

0KXO	+ 0.89	GAW
JLEN	+ 0.83	PABE
MTEC	+ 0.77	GAW
0KXO	+ 0.76	MTEC
PABE	+ 0.73	AUTO
JLEN	+ 0.72	AUTO

High negative correlations

MTEC	- 0.88	JLEN
MTEC	- 0.74	PABE
JLEN	- 0.68	GAW
MTEC	- 0.65	0R8Q
BKCG	- 0.65	0R8Q
MTEC	- 0.63	AUTO

Risk-Adjusted Indicators

There is a big difference between Direct Stock performing well and Direct Line Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Direct Line's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
GAW	1.41	0.31	0.18	0.49	1.29	(1.72)	2.89	(1.94)	23.22
AUTO	0.88	(0.19)	0.00	0.77	0.00	0.00	1.52	(2.04)	8.57
0R8Q	1.61	(0.55)	0.00	(2.08)	0.00	0.00	2.47	(3.90)	17.04
IGSU	0.51	(0.01)	(0.04)	(0.03)	0.81	(0.46)	0.94	(1.33)	3.49
PABE	0.69	(0.10)	0.00	(1.13)	0.00	0.00	1.26	(1.72)	4.41
AEO	1.01	(0.04)	0.00	0.14	0.00	0.00	3.01	(3.55)	9.81
JLEN	1.27	(0.33)	0.00	6.76	0.00	0.00	1.91	(3.01)	8.28
BKCG	3.69	0.47	0.10	0.88	4.18	(3.96)	6.82	(6.97)	27.32
MTEC	2.25	0.76	0.30	(1.72)	1.32	(4.30)	5.56	(2.88)	28.29
0KXO	1.00	0.00	(0.01)	0.02	1.26	(1.09)	2.17	(2.09)	7.90

Be your own money manager

Our tools can tell you how much better you can do entering a position in Direct Line without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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