Pair Correlation Between DOW and Diamond Hill

This module allows you to analyze existing cross correlation between DOW and Diamond Hill Investment Group Inc. You can compare the effects of market volatilities on DOW and Diamond Hill 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 DOW with a short position of Diamond Hill. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Diamond Hill.
 Time Horizon     30 Days    Login   to change
 DOW  vs   Diamond Hill Investment Group
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the Diamond Hill. But the index apears to be less risky and, when comparing its historical volatility, DOW is 1.59 times less risky than Diamond Hill. The index trades about -0.05 of its potential returns per unit of risk. The Diamond Hill Investment Group Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  20,349  in Diamond Hill Investment Group Inc on February 15, 2018 and sell it today you would earn a total of  532.00  from holding Diamond Hill Investment Group Inc or generate 2.61% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Diamond Hill


Time Period1 Month [change]
ValuesDaily Returns


Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Diamond Hill Investment Group in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Diamond Hill Investment and DOW 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 DOW are associated (or correlated) with Diamond Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamond Hill Investment has no effect on the direction of DOW i.e. DOW and Diamond Hill go up and down completely randomly.

Comparative Volatility

 Predicted Return Density