Correlation Between Crossmark Steward and Dodge International

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

By analyzing existing cross correlation between Crossmark Steward Equity and Dodge International Stock, you can compare the effects of market volatilities on Crossmark Steward and Dodge 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 Crossmark Steward with a short position of Dodge International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossmark Steward and Dodge International.

Diversification Opportunities for Crossmark Steward and Dodge International

0.85

Correlation Coefficient

Crossmark Steward  Dodge International

Very poor diversification

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

Pair Corralation between Crossmark Steward and Dodge International

Assuming the 90 days horizon Crossmark Steward is expected to generate 10.84 times less return on investment than Dodge International. But when comparing it to its historical volatility, Crossmark Steward Equity is 1.53 times less risky than Dodge International. It trades about 0.01 of its potential returns per unit of risk. Dodge International Stock is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4,298  in Dodge International Stock on September 26, 2024 and sell it today you would earn a total of  716.00  from holding Dodge International Stock or generate 16.66% return on investment over 90 days.

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

Crossmark Steward Equity  vs.  Dodge International Stock

Crossmark Steward Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crossmark Steward Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Dodge International Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dodge International Stock has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Crossmark Steward and Dodge International

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

The idea behind Crossmark Steward Equity and Dodge International Stock 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.