Correlation Between Cref Inflation and Diamond Hill
Can any of the company-specific risk be diversified away by investing in both Cref Inflation and Diamond Hill 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 Cref Inflation and Diamond Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Inflation Linked Bond and Diamond Hill Large, you can compare the effects of market volatilities on Cref Inflation and Diamond Hill 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 Cref Inflation with a short position of Diamond Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation and Diamond Hill.
Diversification Opportunities for Cref Inflation and Diamond Hill
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cref and Diamond is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond and Diamond Hill Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamond Hill Large and Cref Inflation 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 Cref Inflation Linked Bond are associated (or correlated) with Diamond Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamond Hill Large has no effect on the direction of Cref Inflation i.e., Cref Inflation and Diamond Hill go up and down completely randomly.
Pair Corralation between Cref Inflation and Diamond Hill
Assuming the 90 days trading horizon Cref Inflation Linked Bond is expected to generate 0.17 times more return on investment than Diamond Hill. However, Cref Inflation Linked Bond is 5.88 times less risky than Diamond Hill. It trades about 0.02 of its potential returns per unit of risk. Diamond Hill Large is currently generating about -0.04 per unit of risk. If you would invest 9,089 in Cref Inflation Linked Bond on September 5, 2025 and sell it today you would earn a total of 13.00 from holding Cref Inflation Linked Bond or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Inflation Linked Bond vs. Diamond Hill Large
Performance |
| Timeline |
| Cref Inflation Linked |
| Diamond Hill Large |
Cref Inflation and Diamond Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Inflation and Diamond Hill
The main advantage of trading using opposite Cref Inflation and Diamond Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation position performs unexpectedly, Diamond Hill 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 Diamond Hill will offset losses from the drop in Diamond Hill's long position.| Cref Inflation vs. Financial Industries Fund | Cref Inflation vs. Blackrock Financial Institutions | Cref Inflation vs. Goldman Sachs Financial | Cref Inflation vs. John Hancock Financial |
| Diamond Hill vs. Fidelity Advisor Health | Diamond Hill vs. Baron Health Care | Diamond Hill vs. Putnam Global Health | Diamond Hill vs. The Hartford Healthcare |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |