Correlation Between Dimensional International and OShares Small
Can any of the company-specific risk be diversified away by investing in both Dimensional International and OShares Small 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 International and OShares Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional International High and OShares Small Cap Quality, you can compare the effects of market volatilities on Dimensional International and OShares Small 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 International with a short position of OShares Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional International and OShares Small.
Diversification Opportunities for Dimensional International and OShares Small
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dimensional and OShares is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional International High and OShares Small Cap Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OShares Small Cap and Dimensional International 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 International High are associated (or correlated) with OShares Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OShares Small Cap has no effect on the direction of Dimensional International i.e., Dimensional International and OShares Small go up and down completely randomly.
Pair Corralation between Dimensional International and OShares Small
Given the investment horizon of 90 days Dimensional International High is expected to generate 0.85 times more return on investment than OShares Small. However, Dimensional International High is 1.17 times less risky than OShares Small. It trades about 0.11 of its potential returns per unit of risk. OShares Small Cap Quality is currently generating about -0.03 per unit of risk. If you would invest 2,967 in Dimensional International High on September 3, 2025 and sell it today you would earn a total of 142.00 from holding Dimensional International High or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional International High vs. OShares Small Cap Quality
Performance |
| Timeline |
| Dimensional International |
| OShares Small Cap |
Dimensional International and OShares Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional International and OShares Small
The main advantage of trading using opposite Dimensional International and OShares Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional International position performs unexpectedly, OShares Small 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 OShares Small will offset losses from the drop in OShares Small's long position.| Dimensional International vs. FT Vest Equity | Dimensional International vs. Northern Lights | Dimensional International vs. Diamond Hill Funds | Dimensional International vs. JPMorgan Fundamental Data |
| OShares Small vs. FT Vest Equity | OShares Small vs. Northern Lights | OShares Small vs. Diamond Hill Funds | OShares Small vs. Dimensional International High |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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