Correlation Between Dana Large and Edward Jones

Can any of the company-specific risk be diversified away by investing in both Dana Large and Edward Jones 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 Edward Jones 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 Edward Jones Money, you can compare the effects of market volatilities on Dana Large and Edward Jones 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 Edward Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Edward Jones.

Diversification Opportunities for Dana Large and Edward Jones

0.0

Correlation Coefficient

Dana Large  Edward Jones

Pay attention - limited upside

The 3 months correlation between Dana and Edward is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Edward Jones Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edward Jones Money 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 Edward Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edward Jones Money has no effect on the direction of Dana Large i.e., Dana Large and Edward Jones go up and down completely randomly.

Pair Corralation between Dana Large and Edward Jones

Assuming the 90 days horizon Dana Large Cap is expected to generate 12.17 times more return on investment than Edward Jones. However, Dana Large is 12.17 times more volatile than Edward Jones Money. It trades about 0.02 of its potential returns per unit of risk. Edward Jones Money is currently generating about 0.1 per unit of risk. If you would invest  1,984  in Dana Large Cap on December 5, 2024 and sell it today you would earn a total of  135.00  from holding Dana Large Cap or generate 6.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Dana Large Cap  vs.  Edward Jones Money

Dana Large Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dana Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Edward Jones Money

Risk-Adjusted Performance

Very Weak

Over the last 90 days Edward Jones Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Edward Jones is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Dana Large and Edward Jones

The main advantage of trading using opposite Dana Large and Edward Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, Edward Jones 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 Edward Jones will offset losses from the drop in Edward Jones' long position.

The idea behind Dana Large Cap and Edward Jones Money pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..