Correlation Between Performance Trust and Dfa Real

Can any of the company-specific risk be diversified away by investing in both Performance Trust and Dfa Real 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 Performance Trust and Dfa Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Performance Trust Strategic and Dfa Real Estate, you can compare the effects of market volatilities on Performance Trust and Dfa Real 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 Performance Trust with a short position of Dfa Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Trust and Dfa Real.

Diversification Opportunities for Performance Trust and Dfa Real

-0.03

Correlation Coefficient

Performance Trust  Dfa Real

Good diversification

The 3 months correlation between Performance and Dfa is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Performance Trust Strategic and Dfa Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Real Estate and Performance Trust 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 Performance Trust Strategic are associated (or correlated) with Dfa Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Real Estate has no effect on the direction of Performance Trust i.e., Performance Trust and Dfa Real go up and down completely randomly.

Pair Corralation between Performance Trust and Dfa Real

Assuming the 90 days horizon Performance Trust Strategic is expected to generate 0.36 times more return on investment than Dfa Real. However, Performance Trust Strategic is 2.76 times less risky than Dfa Real. It trades about 0.11 of its potential returns per unit of risk. Dfa Real Estate is currently generating about -0.02 per unit of risk. If you would invest  1,928  in Performance Trust Strategic on May 20, 2025 and sell it today you would earn a total of  39.00  from holding Performance Trust Strategic or generate 2.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Performance Trust Strategic  vs.  Dfa Real Estate

Performance Trust

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Trust Strategic are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Performance Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dfa Real Estate

Risk-Adjusted Performance

Weakest

Over the last 90 days Dfa Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Dfa Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Performance Trust and Dfa Real

The main advantage of trading using opposite Performance Trust and Dfa Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Trust position performs unexpectedly, Dfa Real 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 Real will offset losses from the drop in Dfa Real's long position.

The idea behind Performance Trust Strategic and Dfa Real Estate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.