Correlation Between Dimensional 2055 and Sextant International

Can any of the company-specific risk be diversified away by investing in both Dimensional 2055 and Sextant International 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 Dimensional 2055 and Sextant International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dimensional 2055 Target and Sextant International Fund, you can compare the effects of market volatilities on Dimensional 2055 and Sextant International 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 Dimensional 2055 with a short position of Sextant International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional 2055 and Sextant International.

Diversification Opportunities for Dimensional 2055 and Sextant International

0.85

Correlation Coefficient

Dimensional 2055  Sextant International

Very poor diversification

The 3 months correlation between Dimensional and Sextant is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional 2055 Target and Sextant International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sextant International and Dimensional 2055 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 Dimensional 2055 Target are associated (or correlated) with Sextant International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sextant International has no effect on the direction of Dimensional 2055 i.e., Dimensional 2055 and Sextant International go up and down completely randomly.

Pair Corralation between Dimensional 2055 and Sextant International

Assuming the 90 days horizon Dimensional 2055 is expected to generate 1.24 times less return on investment than Sextant International. But when comparing it to its historical volatility, Dimensional 2055 Target is 1.7 times less risky than Sextant International. It trades about 0.11 of its potential returns per unit of risk. Sextant International Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,556  in Sextant International Fund on September 4, 2025 and sell it today you would earn a total of  144.00  from holding Sextant International Fund or generate 5.63% return on investment over 90 days.

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

Dimensional 2055 Target  vs.  Sextant International Fund

Dimensional 2055 Target

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Dimensional 2055 Target are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking signals, Dimensional 2055 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sextant International

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Sextant International Fund are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Sextant International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Dimensional 2055 and Sextant International

The main advantage of trading using opposite Dimensional 2055 and Sextant International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional 2055 position performs unexpectedly, Sextant International 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 Sextant International will offset losses from the drop in Sextant International's long position.

The idea behind Dimensional 2055 Target and Sextant International Fund 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.