Correlation Between Dodge Cox and Calvert Emerging
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Calvert 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 Dodge Cox and Calvert Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dodge Cox Emerging and Calvert Emerging Markets, you can compare the effects of market volatilities on Dodge Cox and Calvert 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 Dodge Cox with a short position of Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Calvert Emerging.
Diversification Opportunities for Dodge Cox and Calvert Emerging
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dodge and Calvert is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Cox Emerging and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets and Dodge Cox 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 Dodge Cox Emerging are associated (or correlated) with Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Dodge Cox i.e., Dodge Cox and Calvert Emerging go up and down completely randomly.
Pair Corralation between Dodge Cox and Calvert Emerging
Assuming the 90 days horizon Dodge Cox Emerging is expected to generate 0.82 times more return on investment than Calvert Emerging. However, Dodge Cox Emerging is 1.23 times less risky than Calvert Emerging. It trades about 0.12 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about 0.05 per unit of risk. If you would invest 871.00 in Dodge Cox Emerging on December 29, 2024 and sell it today you would earn a total of 55.00 from holding Dodge Cox Emerging or generate 6.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Dodge Cox Emerging vs. Calvert Emerging Markets
Performance |
Timeline |
Dodge Cox Emerging |
Calvert Emerging Markets |
Dodge Cox and Calvert Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dodge Cox and Calvert Emerging
The main advantage of trading using opposite Dodge Cox and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Calvert 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 Calvert Emerging will offset losses from the drop in Calvert Emerging's long position.Dodge Cox vs. Foundry Partners Fundamental | Dodge Cox vs. Glg Intl Small | Dodge Cox vs. United Kingdom Small | Dodge Cox vs. Hunter Small Cap |
Calvert Emerging vs. Eip Growth And | Calvert Emerging vs. Vanguard Dividend Growth | Calvert Emerging vs. Qs Moderate Growth | Calvert Emerging vs. Qs Growth 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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