Correlation Between Great Lakes and Dfa Real

Can any of the company-specific risk be diversified away by investing in both Great Lakes and Dfa Real 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 Great Lakes and Dfa Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Great Lakes Disciplined and Dfa Real Estate, you can compare the effects of market volatilities on Great Lakes and Dfa Real 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 Great Lakes with a short position of Dfa Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Lakes and Dfa Real.

Diversification Opportunities for Great Lakes and Dfa Real

0.0

Correlation Coefficient

Great Lakes  Dfa Real

Pay attention - limited upside

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

Pair Corralation between Great Lakes and Dfa Real

If you would invest  3,928  in Dfa Real Estate on December 19, 2024 and sell it today you would earn a total of  179.00  from holding Dfa Real Estate or generate 4.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Great Lakes Disciplined  vs.  Dfa Real Estate

Great Lakes Disciplined

Risk-Adjusted Performance

Very Weak

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

Dfa Real Estate

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dfa Real Estate are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Dfa Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Great Lakes and Dfa Real

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

The idea behind Great Lakes Disciplined and Dfa Real Estate 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.