Correlation Between Dividend Growth and Ellsworth Convertible
Can any of the company-specific risk be diversified away by investing in both Dividend Growth and Ellsworth Convertible 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 Dividend Growth and Ellsworth Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dividend Growth Split and Ellsworth Convertible Growth, you can compare the effects of market volatilities on Dividend Growth and Ellsworth Convertible 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 Dividend Growth with a short position of Ellsworth Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dividend Growth and Ellsworth Convertible.
Diversification Opportunities for Dividend Growth and Ellsworth Convertible
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dividend and Ellsworth is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Dividend Growth Split and Ellsworth Convertible Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellsworth Convertible and Dividend Growth 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 Dividend Growth Split are associated (or correlated) with Ellsworth Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellsworth Convertible has no effect on the direction of Dividend Growth i.e., Dividend Growth and Ellsworth Convertible go up and down completely randomly.
Pair Corralation between Dividend Growth and Ellsworth Convertible
If you would invest 996.00 in Ellsworth Convertible Growth on November 4, 2024 and sell it today you would earn a total of 8.00 from holding Ellsworth Convertible Growth or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 2.5% |
| Values | Daily Returns |
Dividend Growth Split vs. Ellsworth Convertible Growth
Performance |
| Timeline |
| Dividend Growth Split |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ellsworth Convertible |
Dividend Growth and Ellsworth Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dividend Growth and Ellsworth Convertible
The main advantage of trading using opposite Dividend Growth and Ellsworth Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dividend Growth position performs unexpectedly, Ellsworth Convertible 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 Ellsworth Convertible will offset losses from the drop in Ellsworth Convertible's long position.| Dividend Growth vs. Financial 15 Split | Dividend Growth vs. SEI Investments | Dividend Growth vs. Oxford Lane Capital | Dividend Growth vs. Blackstone Group |
| Ellsworth Convertible vs. Azimut Holding SpA | Ellsworth Convertible vs. Ameritrans Capital Corp | Ellsworth Convertible vs. Gdl Closed Fund | Ellsworth Convertible vs. Gabelli Global Small |
Check out your portfolio center.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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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