Correlation Between Tfa Alphagen and Dfa Emerging

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

By analyzing existing cross correlation between Tfa Alphagen Growth and Dfa Emerging Markets, you can compare the effects of market volatilities on Tfa Alphagen 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 Tfa Alphagen with a short position of Dfa Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tfa Alphagen and Dfa Emerging.

Diversification Opportunities for Tfa Alphagen and Dfa Emerging

0.94

Correlation Coefficient

Tfa Alphagen  Dfa Emerging

Almost no diversification

The 3 months correlation between Tfa and Dfa is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth 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 Tfa Alphagen 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 Tfa Alphagen Growth 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 Tfa Alphagen i.e., Tfa Alphagen and Dfa Emerging go up and down completely randomly.

Pair Corralation between Tfa Alphagen and Dfa Emerging

Assuming the 90 days horizon Tfa Alphagen Growth is expected to generate 1.14 times more return on investment than Dfa Emerging. However, Tfa Alphagen is 1.14 times more volatile than Dfa Emerging Markets. It trades about 0.17 of its potential returns per unit of risk. Dfa Emerging Markets is currently generating about 0.14 per unit of risk. If you would invest  1,193  in Tfa Alphagen Growth on July 23, 2025 and sell it today you would earn a total of  116.00  from holding Tfa Alphagen Growth or generate 9.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Tfa Alphagen Growth  vs.  Dfa Emerging Markets

Tfa Alphagen Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tfa Alphagen Growth are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Tfa Alphagen may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Dfa Emerging Markets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dfa Emerging Markets are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Dfa Emerging may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Tfa Alphagen and Dfa Emerging

The main advantage of trading using opposite Tfa Alphagen and Dfa Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tfa Alphagen 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.

The idea behind Tfa Alphagen Growth and Dfa Emerging Markets 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.