Correlation Between Dws Global and Summit Global
Can any of the company-specific risk be diversified away by investing in both Dws Global and Summit Global 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 Dws Global and Summit Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dws Global Macro and Summit Global Investments, you can compare the effects of market volatilities on Dws Global and Summit Global 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 Dws Global with a short position of Summit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dws Global and Summit Global.
Diversification Opportunities for Dws Global and Summit Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dws and Summit is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Dws Global Macro and Summit Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Global Investments and Dws Global 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 Dws Global Macro are associated (or correlated) with Summit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Global Investments has no effect on the direction of Dws Global i.e., Dws Global and Summit Global go up and down completely randomly.
Pair Corralation between Dws Global and Summit Global
Assuming the 90 days horizon Dws Global Macro is expected to generate 0.65 times more return on investment than Summit Global. However, Dws Global Macro is 1.54 times less risky than Summit Global. It trades about 0.17 of its potential returns per unit of risk. Summit Global Investments is currently generating about 0.08 per unit of risk. If you would invest 1,090 in Dws Global Macro on September 4, 2025 and sell it today you would earn a total of 46.00 from holding Dws Global Macro or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dws Global Macro vs. Summit Global Investments
Performance |
| Timeline |
| Dws Global Macro |
| Summit Global Investments |
Dws Global and Summit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dws Global and Summit Global
The main advantage of trading using opposite Dws Global and Summit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dws Global position performs unexpectedly, Summit Global 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 Summit Global will offset losses from the drop in Summit Global's long position.| Dws Global vs. Profunds Large Cap Growth | Dws Global vs. Knights Of Umbus | Dws Global vs. Fidelity Large Cap | Dws Global vs. Sterling Capital Behavioral |
| Summit Global vs. Qs Large Cap | Summit Global vs. Knights Of Umbus | Summit Global vs. Dunham Large Cap | Summit Global vs. Profunds Large Cap Growth |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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