Correlation Between Dana Large and Small Cap
Can any of the company-specific risk be diversified away by investing in both Dana Large and Small Cap 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 Dana Large and Small Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Large Cap and Small Cap Value Fund, you can compare the effects of market volatilities on Dana Large and Small Cap 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 Dana Large with a short position of Small Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Small Cap.
Diversification Opportunities for Dana Large and Small Cap
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dana and Small is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Small Cap Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Value and Dana Large 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 Dana Large Cap are associated (or correlated) with Small Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Value has no effect on the direction of Dana Large i.e., Dana Large and Small Cap go up and down completely randomly.
Pair Corralation between Dana Large and Small Cap
Assuming the 90 days horizon Dana Large Cap is expected to generate 0.51 times more return on investment than Small Cap. However, Dana Large Cap is 1.96 times less risky than Small Cap. It trades about -0.08 of its potential returns per unit of risk. Small Cap Value Fund is currently generating about -0.23 per unit of risk. If you would invest 2,662 in Dana Large Cap on September 20, 2024 and sell it today you would lose (38.00) from holding Dana Large Cap or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Large Cap vs. Small Cap Value Fund
Performance |
| Timeline |
| Dana Large Cap |
| Small Cap Value |
Dana Large and Small Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Large and Small Cap
The main advantage of trading using opposite Dana Large and Small Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, Small Cap 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 Small Cap will offset losses from the drop in Small Cap's long position.| Dana Large vs. Short Precious Metals | Dana Large vs. Vy Goldman Sachs | Dana Large vs. Oppenheimer Gold Special | Dana Large vs. Sprott Gold Equity |
| Small Cap vs. Dana Large Cap | Small Cap vs. Virtus Nfj Large Cap | Small Cap vs. Avantis Large Cap | Small Cap vs. American Mutual Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |