Correlation Between Dana Large and Emerging Europe
Can any of the company-specific risk be diversified away by investing in both Dana Large and Emerging Europe 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 Emerging Europe 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 Emerging Europe Fund, you can compare the effects of market volatilities on Dana Large and Emerging Europe 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 Emerging Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Emerging Europe.
Diversification Opportunities for Dana Large and Emerging Europe
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dana and Emerging is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Emerging Europe Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Europe 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 Emerging Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Europe has no effect on the direction of Dana Large i.e., Dana Large and Emerging Europe go up and down completely randomly.
Pair Corralation between Dana Large and Emerging Europe
If you would invest 2,034 in Dana Large Cap on September 4, 2024 and sell it today you would earn a total of 679.00 from holding Dana Large Cap or generate 33.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.4% |
| Values | Daily Returns |
Dana Large Cap vs. Emerging Europe Fund
Performance |
| Timeline |
| Dana Large Cap |
| Emerging Europe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dana Large and Emerging Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Large and Emerging Europe
The main advantage of trading using opposite Dana Large and Emerging Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, Emerging Europe 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 Emerging Europe will offset losses from the drop in Emerging Europe's long position.| Dana Large vs. Nationwide Global Equity | Dana Large vs. Principal Lifetime Hybrid | Dana Large vs. Growth Strategy Fund | Dana Large vs. Semiconductor Ultrasector Profund |
| Emerging Europe vs. Qs Large Cap | Emerging Europe vs. Dana Large Cap | Emerging Europe vs. Vela Large Cap | Emerging Europe vs. Dodge Cox Stock |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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