Correlation Between Dimensional Retirement and Steward Funds
Can any of the company-specific risk be diversified away by investing in both Dimensional Retirement and Steward Funds 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 Dimensional Retirement and Steward Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional Retirement Income and Steward Funds , you can compare the effects of market volatilities on Dimensional Retirement and Steward Funds 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 Dimensional Retirement with a short position of Steward Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional Retirement and Steward Funds.
Diversification Opportunities for Dimensional Retirement and Steward Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dimensional and Steward is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional Retirement Income and Steward Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward Funds and Dimensional Retirement 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 Dimensional Retirement Income are associated (or correlated) with Steward Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward Funds has no effect on the direction of Dimensional Retirement i.e., Dimensional Retirement and Steward Funds go up and down completely randomly.
Pair Corralation between Dimensional Retirement and Steward Funds
Assuming the 90 days horizon Dimensional Retirement is expected to generate 3.33 times less return on investment than Steward Funds. But when comparing it to its historical volatility, Dimensional Retirement Income is 2.66 times less risky than Steward Funds. It trades about 0.12 of its potential returns per unit of risk. Steward Funds is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,820 in Steward Funds on November 3, 2024 and sell it today you would earn a total of 147.00 from holding Steward Funds or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 72.58% |
| Values | Daily Returns |
Dimensional Retirement Income vs. Steward Funds
Performance |
| Timeline |
| Dimensional Retirement |
| Steward Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dimensional Retirement and Steward Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional Retirement and Steward Funds
The main advantage of trading using opposite Dimensional Retirement and Steward Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional Retirement position performs unexpectedly, Steward Funds 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 Steward Funds will offset losses from the drop in Steward Funds' long position.| Dimensional Retirement vs. Artisan High Income | Dimensional Retirement vs. Federated High Yield | Dimensional Retirement vs. Multi Manager High Yield | Dimensional Retirement vs. City National Rochdale |
| Steward Funds vs. Aig Government Money | Steward Funds vs. Davis Government Bond | Steward Funds vs. Blackrock Government Bond | Steward Funds vs. Virtus Seix Government |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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