Correlation Between Diamond Hill and MAX S
Can any of the company-specific risk be diversified away by investing in both Diamond Hill and MAX S 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 Diamond Hill and MAX S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamond Hill Funds and MAX S P, you can compare the effects of market volatilities on Diamond Hill and MAX S 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 Diamond Hill with a short position of MAX S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Hill and MAX S.
Diversification Opportunities for Diamond Hill and MAX S
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Diamond and MAX is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Hill Funds and MAX S P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAX S P and Diamond Hill 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 Diamond Hill Funds are associated (or correlated) with MAX S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAX S P has no effect on the direction of Diamond Hill i.e., Diamond Hill and MAX S go up and down completely randomly.
Pair Corralation between Diamond Hill and MAX S
Given the investment horizon of 90 days Diamond Hill Funds is expected to under-perform the MAX S. But the etf apears to be less risky and, when comparing its historical volatility, Diamond Hill Funds is 4.08 times less risky than MAX S. The etf trades about 0.0 of its potential returns per unit of risk. The MAX S P is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,922 in MAX S P on September 8, 2025 and sell it today you would earn a total of 745.00 from holding MAX S P or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.92% |
| Values | Daily Returns |
Diamond Hill Funds vs. MAX S P
Performance |
| Timeline |
| Diamond Hill Funds |
| MAX S P |
Diamond Hill and MAX S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamond Hill and MAX S
The main advantage of trading using opposite Diamond Hill and MAX S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Hill position performs unexpectedly, MAX S 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 MAX S will offset losses from the drop in MAX S's long position.| Diamond Hill vs. RiverFront Dynamic Flex Cap | Diamond Hill vs. First Trust Horizon | Diamond Hill vs. Formidable ETF | Diamond Hill vs. Formidable Fortress ETF |
| MAX S vs. ProShares Ultra Dow30 | MAX S vs. Burney Factor Rotation | MAX S vs. Neuberger Berman ETF | MAX S vs. First Trust Exchange Traded |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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