Correlation Between Dimensional ETF and Schwab International
Can any of the company-specific risk be diversified away by investing in both Dimensional ETF and Schwab International 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 Dimensional ETF and Schwab International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional ETF Trust and Schwab International Dividend, you can compare the effects of market volatilities on Dimensional ETF and Schwab International 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 Dimensional ETF with a short position of Schwab International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional ETF and Schwab International.
Diversification Opportunities for Dimensional ETF and Schwab International
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dimensional and Schwab is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional ETF Trust and Schwab International Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwab International and Dimensional ETF 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 Dimensional ETF Trust are associated (or correlated) with Schwab International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwab International has no effect on the direction of Dimensional ETF i.e., Dimensional ETF and Schwab International go up and down completely randomly.
Pair Corralation between Dimensional ETF and Schwab International
Given the investment horizon of 90 days Dimensional ETF Trust is expected to under-perform the Schwab International. In addition to that, Dimensional ETF is 1.37 times more volatile than Schwab International Dividend. It trades about -0.01 of its total potential returns per unit of risk. Schwab International Dividend is currently generating about 0.14 per unit of volatility. If you would invest 2,807 in Schwab International Dividend on September 8, 2025 and sell it today you would earn a total of 139.00 from holding Schwab International Dividend or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional ETF Trust vs. Schwab International Dividend
Performance |
| Timeline |
| Dimensional ETF Trust |
| Schwab International |
Dimensional ETF and Schwab International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional ETF and Schwab International
The main advantage of trading using opposite Dimensional ETF and Schwab International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional ETF position performs unexpectedly, Schwab International 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 Schwab International will offset losses from the drop in Schwab International's long position.| Dimensional ETF vs. Goldman Sachs Equal | Dimensional ETF vs. Horizon Kinetics Inflation | Dimensional ETF vs. Global X Lithium | Dimensional ETF vs. Pacer Trendpilot 100 |
| Schwab International vs. Goldman Sachs ActiveBeta | Schwab International vs. Hartford Multifactor Developed | Schwab International vs. Invesco SP 500 | Schwab International vs. Global X Funds |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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