Correlation Between Dimensional Core and EGIS
Can any of the company-specific risk be diversified away by investing in both Dimensional Core and EGIS 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 Dimensional Core and EGIS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional Core Equity and EGIS, you can compare the effects of market volatilities on Dimensional Core and EGIS 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 Dimensional Core with a short position of EGIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional Core and EGIS.
Diversification Opportunities for Dimensional Core and EGIS
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dimensional and EGIS is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional Core Equity and EGIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EGIS and Dimensional Core 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 Dimensional Core Equity are associated (or correlated) with EGIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EGIS has no effect on the direction of Dimensional Core i.e., Dimensional Core and EGIS go up and down completely randomly.
Pair Corralation between Dimensional Core and EGIS
If you would invest 3,413 in Dimensional Core Equity on September 2, 2024 and sell it today you would earn a total of 232.00 from holding Dimensional Core Equity or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Dimensional Core Equity vs. EGIS
Performance |
| Timeline |
| Dimensional Core Equity |
| EGIS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dimensional Core and EGIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional Core and EGIS
The main advantage of trading using opposite Dimensional Core and EGIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional Core position performs unexpectedly, EGIS 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 EGIS will offset losses from the drop in EGIS's long position.| Dimensional Core vs. Dimensional Targeted Value | Dimensional Core vs. Dimensional World ex | Dimensional Core vs. Dimensional Small Cap | Dimensional Core vs. Dimensional Core Equity |
| EGIS vs. ETF Opportunities Trust | EGIS vs. Point Bridge GOP | EGIS vs. EA Series Trust | EGIS vs. EA Series Trust |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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