Pair Correlation Between Diamond Hill and Realty Income

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

Pair Volatility

Given the investment horizon of 30 days, Diamond Hill Investment Group Inc is expected to generate 1.53 times more return on investment than Realty Income. However, Diamond Hill is 1.53 times more volatile than Realty Income Corporation. It trades about 0.06 of its potential returns per unit of risk. Realty Income Corporation is currently generating about -0.16 per unit of risk. If you would invest  20,702  in Diamond Hill Investment Group Inc on November 12, 2017 and sell it today you would earn a total of  199  from holding Diamond Hill Investment Group Inc or generate 0.96% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Diamond Hill and Realty Income
-0.29

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Diamond Hill Investment

  
3 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Diamond Hill Investment Group Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.

Realty Income

  
0 

Risk-Adjusted Performance

Over the last 30 days Realty Income Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.