Correlation Between Dana Large and Large-cap Growth
Can any of the company-specific risk be diversified away by investing in both Dana Large and Large-cap Growth at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dana Large and Large-cap Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Large Cap and Large Cap Growth Profund, you can compare the effects of market volatilities on Dana Large and Large-cap Growth 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 Dana Large with a short position of Large-cap Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Large-cap Growth.
Diversification Opportunities for Dana Large and Large-cap Growth
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dana and Large-cap is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Large Cap Growth Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Large Cap Growth and Dana Large 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 Dana Large Cap are associated (or correlated) with Large-cap Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Large Cap Growth has no effect on the direction of Dana Large i.e., Dana Large and Large-cap Growth go up and down completely randomly.
Pair Corralation between Dana Large and Large-cap Growth
Assuming the 90 days horizon Dana Large Cap is expected to generate 0.74 times more return on investment than Large-cap Growth. However, Dana Large Cap is 1.35 times less risky than Large-cap Growth. It trades about 0.07 of its potential returns per unit of risk. Large Cap Growth Profund is currently generating about 0.03 per unit of risk. If you would invest 2,325 in Dana Large Cap on February 14, 2024 and sell it today you would earn a total of 49.00 from holding Dana Large Cap or generate 2.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Dana Large Cap vs. Large Cap Growth Profund
Performance |
Timeline |
Dana Large Cap |
Large Cap Growth |
Dana Large and Large-cap Growth Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dana Large and Large-cap Growth
The main advantage of trading using opposite Dana Large and Large-cap Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, Large-cap Growth can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Large-cap Growth will offset losses from the drop in Large-cap Growth's long position.Dana Large vs. Vanguard Value Index | Dana Large vs. Vanguard Explorer Fund | Dana Large vs. Aquagold International | Dana Large vs. Barloworld Ltd ADR |
Large-cap Growth vs. American Funds The | Large-cap Growth vs. American Funds The | Large-cap Growth vs. Growth Fund Of | Large-cap Growth vs. Growth Fund Of |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |