Correlation Between Diamond Hill and Growth Fund
Can any of the company-specific risk be diversified away by investing in both Diamond Hill and Growth Fund 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 Growth Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamond Hill Long Short and Growth Fund Of, you can compare the effects of market volatilities on Diamond Hill and Growth Fund 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 Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Hill and Growth Fund.
Diversification Opportunities for Diamond Hill and Growth Fund
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DIAMOND and Growth is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Hill Long Short and Growth Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund 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 Long Short are associated (or correlated) with Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of Diamond Hill i.e., Diamond Hill and Growth Fund go up and down completely randomly.
Pair Corralation between Diamond Hill and Growth Fund
Assuming the 90 days horizon Diamond Hill Long Short is expected to generate 0.4 times more return on investment than Growth Fund. However, Diamond Hill Long Short is 2.47 times less risky than Growth Fund. It trades about 0.16 of its potential returns per unit of risk. Growth Fund Of is currently generating about 0.06 per unit of risk. If you would invest 3,059 in Diamond Hill Long Short on September 4, 2025 and sell it today you would earn a total of 122.00 from holding Diamond Hill Long Short or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamond Hill Long Short vs. Growth Fund Of
Performance |
| Timeline |
| Diamond Hill Long |
| Growth Fund |
Diamond Hill and Growth Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamond Hill and Growth Fund
The main advantage of trading using opposite Diamond Hill and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Hill position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.| Diamond Hill vs. Lord Abbett Convertible | Diamond Hill vs. Virtus Convertible | Diamond Hill vs. Fidelity Sai Convertible | Diamond Hill vs. Gabelli Convertible And |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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