Correlation Between DSJA and Acruence Active
Can any of the company-specific risk be diversified away by investing in both DSJA and Acruence Active 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 Acruence Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and Acruence Active Hedge, you can compare the effects of market volatilities on DSJA and Acruence Active 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 Acruence Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and Acruence Active.
Diversification Opportunities for DSJA and Acruence Active
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DSJA and Acruence is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding DSJA and Acruence Active Hedge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acruence Active Hedge 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 Acruence Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acruence Active Hedge has no effect on the direction of DSJA i.e., DSJA and Acruence Active go up and down completely randomly.
Pair Corralation between DSJA and Acruence Active
Given the investment horizon of 90 days DSJA is expected to generate 0.65 times more return on investment than Acruence Active. However, DSJA is 1.53 times less risky than Acruence Active. It trades about 0.14 of its potential returns per unit of risk. Acruence Active Hedge is currently generating about 0.07 per unit of risk. If you would invest 2,468 in DSJA on August 30, 2024 and sell it today you would earn a total of 397.00 from holding DSJA or generate 16.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 31.31% |
| Values | Daily Returns |
DSJA vs. Acruence Active Hedge
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Acruence Active Hedge |
DSJA and Acruence Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and Acruence Active
The main advantage of trading using opposite DSJA and Acruence Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA position performs unexpectedly, Acruence Active 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 Acruence Active will offset losses from the drop in Acruence Active's long position.| DSJA vs. ProShares VIX Mid Term | DSJA vs. ProShares VIX Short Term | DSJA vs. iPath Series B | DSJA vs. ProShares Short Russell2000 |
| Acruence Active vs. ZEGA Buy and | Acruence Active vs. Innovator Equity Accelerated | Acruence Active vs. Innovator SP 500 | Acruence Active vs. Innovator SP 500 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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