Correlation Between Gurtin California and Dfa Emerging
Can any of the company-specific risk be diversified away by investing in both Gurtin California and Dfa Emerging 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 Gurtin California and Dfa Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gurtin California Muni and Dfa Emerging Markets, you can compare the effects of market volatilities on Gurtin California and Dfa Emerging 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 Gurtin California with a short position of Dfa Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gurtin California and Dfa Emerging.
Diversification Opportunities for Gurtin California and Dfa Emerging
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gurtin and Dfa is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gurtin California Muni and Dfa Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Emerging Markets and Gurtin California 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 Gurtin California Muni are associated (or correlated) with Dfa Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Emerging Markets has no effect on the direction of Gurtin California i.e., Gurtin California and Dfa Emerging go up and down completely randomly.
Pair Corralation between Gurtin California and Dfa Emerging
Assuming the 90 days horizon Gurtin California is expected to generate 3.84 times less return on investment than Dfa Emerging. But when comparing it to its historical volatility, Gurtin California Muni is 8.09 times less risky than Dfa Emerging. It trades about 0.35 of its potential returns per unit of risk. Dfa Emerging Markets is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,611 in Dfa Emerging Markets on June 9, 2025 and sell it today you would earn a total of 120.00 from holding Dfa Emerging Markets or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gurtin California Muni vs. Dfa Emerging Markets
Performance |
| Timeline |
| Gurtin California Muni |
| Dfa Emerging Markets |
Gurtin California and Dfa Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gurtin California and Dfa Emerging
The main advantage of trading using opposite Gurtin California and Dfa Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gurtin California position performs unexpectedly, Dfa Emerging 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 Dfa Emerging will offset losses from the drop in Dfa Emerging's long position.| Gurtin California vs. Gurtin California Municipal | Gurtin California vs. Gurtin National Muni | Gurtin California vs. Gurtin National Municipal | Gurtin California vs. Partners Iii Opportunity |
| Dfa Emerging vs. Deutsche Gold Precious | Dfa Emerging vs. The Gold Bullion | Dfa Emerging vs. Europac Gold Fund | Dfa Emerging vs. Gabelli Gold Fund |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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