Correlation Between DSJA and AdvisorShares
Can any of the company-specific risk be diversified away by investing in both DSJA and AdvisorShares 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 DSJA and AdvisorShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and AdvisorShares, you can compare the effects of market volatilities on DSJA and AdvisorShares 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 DSJA with a short position of AdvisorShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and AdvisorShares.
Diversification Opportunities for DSJA and AdvisorShares
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DSJA and AdvisorShares is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding DSJA and AdvisorShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares and DSJA 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 DSJA are associated (or correlated) with AdvisorShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares has no effect on the direction of DSJA i.e., DSJA and AdvisorShares go up and down completely randomly.
Pair Corralation between DSJA and AdvisorShares
If you would invest 1,739 in AdvisorShares on August 30, 2024 and sell it today you would earn a total of 0.00 from holding AdvisorShares or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DSJA vs. AdvisorShares
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AdvisorShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DSJA and AdvisorShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and AdvisorShares
The main advantage of trading using opposite DSJA and AdvisorShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA position performs unexpectedly, AdvisorShares 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 AdvisorShares will offset losses from the drop in AdvisorShares' long position.| DSJA vs. ProShares VIX Mid Term | DSJA vs. ProShares VIX Short Term | DSJA vs. iPath Series B | DSJA vs. ProShares Short Russell2000 |
| AdvisorShares vs. iShares MSCI USA | AdvisorShares vs. iShares MSCI USA | AdvisorShares vs. iShares MSCI USA | AdvisorShares vs. iShares Expanded Tech Software |
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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