Correlation Between Dana Large and High Yield
Can any of the company-specific risk be diversified away by investing in both Dana Large and High Yield 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 High Yield 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 High Yield Fund, you can compare the effects of market volatilities on Dana Large and High Yield 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 High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and High Yield.
Diversification Opportunities for Dana Large and High Yield
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dana and High is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Fund 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 High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Fund has no effect on the direction of Dana Large i.e., Dana Large and High Yield go up and down completely randomly.
Pair Corralation between Dana Large and High Yield
Assuming the 90 days horizon Dana Large Cap is expected to generate 3.99 times more return on investment than High Yield. However, Dana Large is 3.99 times more volatile than High Yield Fund. It trades about 0.15 of its potential returns per unit of risk. High Yield Fund is currently generating about 0.21 per unit of risk. If you would invest 1,978 in Dana Large Cap on September 14, 2024 and sell it today you would earn a total of 725.00 from holding Dana Large Cap or generate 36.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Large Cap vs. High Yield Fund
Performance |
| Timeline |
| Dana Large Cap |
| High Yield Fund |
Dana Large and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Large and High Yield
The main advantage of trading using opposite Dana Large and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| Dana Large vs. Chestnut Street Exchange | Dana Large vs. Putnam Money Market | Dana Large vs. Blackrock Exchange Portfolio | Dana Large vs. Matson Money Equity |
| High Yield vs. Americafirst Large Cap | High Yield vs. Dana Large Cap | High Yield vs. Guidemark Large Cap | High Yield vs. Virtus Nfj Large Cap |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |