Correlation Analysis Between Diamond Hill and Realty Income

This module allows you to analyze existing cross correlation between Diamond Hill Investment Group 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.
 Time 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 is expected to generate 14.18 times less return on investment than Realty Income. But when comparing it to its historical volatility, Diamond Hill Investment Group is 1.08 times less risky than Realty Income. It trades about 0.01 of its potential returns per unit of risk. Realty Income Corporation is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  5,279  in Realty Income Corporation on May 24, 2018 and sell it today you would earn a total of  99.00  from holding Realty Income Corporation or generate 1.88% return on investment over 30 days.

Pair Corralation between Diamond Hill and Realty Income

-0.12
Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

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 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  
0 

Risk-Adjusted Performance

Over the last 30 days Diamond Hill Investment Group has generated negative risk-adjusted returns adding no value to investors with long positions.
Realty Income  
7 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Realty Income Corporation are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1169.84

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See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.