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