Dfa - Correlations

DISMX Fund  USD 15.05  0.18  1.21%   
The correlation of Dfa - is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dfa - moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dfa International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Poor diversification

The correlation between DFA - International and NYA is 0.76 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding DFA - International and NYA in the same portfolio, assuming nothing else is changed.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Dfa International. Also, note that the market value of any Mutual Fund could be tightly coupled with the direction of predictive economic indicators such as signals in population.
  
The ability to find closely correlated positions to Dfa - could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dfa - when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dfa - - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dfa International to buy it.

Related Correlations Analysis

MCONX
SCBCX
HCVAX
FZABX
LIGFX
PQCNX
FTCCX
CFAIX
MCONX
0.910.850.220.880.890.930.99
MCONX
SCBCX
0.910.790.50.960.640.990.92
SCBCX
HCVAX
0.850.790.20.690.720.740.9
HCVAX
FZABX
0.220.50.20.54-0.10.460.23
FZABX
LIGFX
0.880.960.690.540.640.970.87
LIGFX
PQCNX
0.890.640.72-0.10.640.70.87
PQCNX
FTCCX
0.930.990.740.460.970.70.92
FTCCX
CFAIX
0.990.920.90.230.870.870.92
CFAIX
MCONX
SCBCX
HCVAX
FZABX
LIGFX
PQCNX
FTCCX
CFAIX
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
CFAIXMCONX
FTCCXSCBCX
FTCCXLIGFX
LIGFXSCBCX
FTCCXMCONX
CFAIXSCBCX
  
High negative correlations   
PQCNXFZABX

Risk-Adjusted Indicators

There is a big difference between Dfa Mutual Fund performing well and Dfa - Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Dfa -'s multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Dfa - without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Already Invested in Dfa International?

The danger of trading Dfa International is mainly related to its market volatility and Mutual Fund specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Dfa - is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Dfa -. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Dfa - International is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Dfa International. Also, note that the market value of any Mutual Fund could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Complementary Tools for Dfa Mutual Fund analysis

When running Dfa -'s price analysis, check to measure Dfa -'s market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dfa - is operating at the current time. Most of Dfa -'s value examination focuses on studying past and present price action to predict the probability of Dfa -'s future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dfa -'s price. Additionally, you may evaluate how the addition of Dfa - to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Dfa -'s value and its price as these two are different measures arrived at by different means. Investors typically determine if Dfa - is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dfa -'s price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.