Correlation Between Dws Equity and Select Equity
Can any of the company-specific risk be diversified away by investing in both Dws Equity and Select Equity 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 Dws Equity and Select Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dws Equity Sector and Select Equity Fund, you can compare the effects of market volatilities on Dws Equity and Select Equity 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 Dws Equity with a short position of Select Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dws Equity and Select Equity.
Diversification Opportunities for Dws Equity and Select Equity
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dws and Select is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Dws Equity Sector and Select Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Equity and Dws Equity 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 Dws Equity Sector are associated (or correlated) with Select Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Equity has no effect on the direction of Dws Equity i.e., Dws Equity and Select Equity go up and down completely randomly.
Pair Corralation between Dws Equity and Select Equity
Assuming the 90 days horizon Dws Equity Sector is expected to generate 0.87 times more return on investment than Select Equity. However, Dws Equity Sector is 1.14 times less risky than Select Equity. It trades about 0.1 of its potential returns per unit of risk. Select Equity Fund is currently generating about 0.09 per unit of risk. If you would invest 1,403 in Dws Equity Sector on July 27, 2025 and sell it today you would earn a total of 754.00 from holding Dws Equity Sector or generate 53.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dws Equity Sector vs. Select Equity Fund
Performance |
| Timeline |
| Dws Equity Sector |
| Select Equity |
Dws Equity and Select Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dws Equity and Select Equity
The main advantage of trading using opposite Dws Equity and Select Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dws Equity position performs unexpectedly, Select Equity 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 Select Equity will offset losses from the drop in Select Equity's long position.| Dws Equity vs. Maryland Tax Free Bond | Dws Equity vs. Harris Associates Investment | Dws Equity vs. The Hartford Total | Dws Equity vs. Dodge Global Bond |
| Select Equity vs. Equity Growth Strategy | Select Equity vs. Equity Growth Strategy | Select Equity vs. Equity Growth Strategy | Select Equity vs. Emerging Markets 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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