Correlation Between Dimensional ETF and OneAscent Small
Can any of the company-specific risk be diversified away by investing in both Dimensional ETF and OneAscent Small 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 ETF and OneAscent Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional ETF Trust and OneAscent Small Cap, you can compare the effects of market volatilities on Dimensional ETF and OneAscent Small 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 ETF with a short position of OneAscent Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional ETF and OneAscent Small.
Diversification Opportunities for Dimensional ETF and OneAscent Small
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dimensional and OneAscent is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional ETF Trust and OneAscent Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent Small Cap and Dimensional ETF 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 ETF Trust are associated (or correlated) with OneAscent Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent Small Cap has no effect on the direction of Dimensional ETF i.e., Dimensional ETF and OneAscent Small go up and down completely randomly.
Pair Corralation between Dimensional ETF and OneAscent Small
Given the investment horizon of 90 days Dimensional ETF is expected to generate 2.66 times less return on investment than OneAscent Small. But when comparing it to its historical volatility, Dimensional ETF Trust is 1.43 times less risky than OneAscent Small. It trades about 0.06 of its potential returns per unit of risk. OneAscent Small Cap is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,500 in OneAscent Small Cap on August 30, 2024 and sell it today you would earn a total of 458.00 from holding OneAscent Small Cap or generate 18.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 24.24% |
| Values | Daily Returns |
Dimensional ETF Trust vs. OneAscent Small Cap
Performance |
| Timeline |
| Dimensional ETF Trust |
| OneAscent Small Cap |
Dimensional ETF and OneAscent Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional ETF and OneAscent Small
The main advantage of trading using opposite Dimensional ETF and OneAscent Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional ETF position performs unexpectedly, OneAscent Small 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 OneAscent Small will offset losses from the drop in OneAscent Small's long position.| Dimensional ETF vs. Schwab Fundamental International | Dimensional ETF vs. Schwab Fundamental Emerging | Dimensional ETF vs. Schwab Fundamental Small | Dimensional ETF vs. Schwab Fundamental Large |
| OneAscent Small vs. Vanguard Mid Cap Index | OneAscent Small vs. Vanguard Small Cap Value | OneAscent Small vs. Vanguard FTSE Emerging | OneAscent Small vs. Vanguard Large Cap Index |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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