Correlation Analysis Between Diamond Hill and DOW

This module allows you to analyze existing cross correlation between Diamond Hill Small Mid Cap Fund and DOW. You can compare the effects of market volatilities on Diamond Hill and DOW 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 DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of Diamond Hill and DOW.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

Diamond Hill Small Mid Cap Fun  vs.  DOW

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Diamond Hill Small Mid Cap Fund is expected to generate 1.13 times more return on investment than DOW. However, Diamond Hill is 1.13 times more volatile than DOW. It trades about -0.01 of its potential returns per unit of risk. DOW is currently generating about -0.03 per unit of risk. If you would invest  2,185  in Diamond Hill Small Mid Cap Fund on September 14, 2019 and sell it today you would lose (17.00)  from holding Diamond Hill Small Mid Cap Fund or give up 0.78% of portfolio value over 30 days.

Pair Corralation between Diamond Hill and DOW

0.89
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Diamond Hill and DOW

Diamond Hill Small Mid Cap Fun diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Diamond Hill Small Mid Cap Fun and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW 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 Small Mid Cap Fund are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of Diamond Hill i.e. Diamond Hill and DOW go up and down completely randomly.
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See also your portfolio center. Please also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.


 
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