Correlation Between Artisan Select and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Artisan Select and Dodge Cox 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 Artisan Select and Dodge Cox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Select Equity and Dodge International Stock, you can compare the effects of market volatilities on Artisan Select and Dodge Cox 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 Artisan Select with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Dodge Cox.
Diversification Opportunities for Artisan Select and Dodge Cox
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Artisan and Dodge is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select 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 Artisan Select 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 Artisan Select Equity are associated (or correlated) with Dodge Cox. 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 Artisan Select i.e., Artisan Select and Dodge Cox go up and down completely randomly.
Pair Corralation between Artisan Select and Dodge Cox
Assuming the 90 days horizon Artisan Select Equity is expected to generate 1.0 times more return on investment than Dodge Cox. However, Artisan Select Equity is 1.0 times less risky than Dodge Cox. It trades about 0.23 of its potential returns per unit of risk. Dodge International Stock is currently generating about -0.22 per unit of risk. If you would invest 1,562 in Artisan Select Equity on August 28, 2024 and sell it today you would earn a total of 55.00 from holding Artisan Select Equity or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Select Equity vs. Dodge International Stock
Performance |
| Timeline |
| Artisan Select Equity |
| Dodge International Stock |
Artisan Select and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Select and Dodge Cox
The main advantage of trading using opposite Artisan Select and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select position performs unexpectedly, Dodge Cox 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 Cox will offset losses from the drop in Dodge Cox's long position.| Artisan Select vs. Artisan Developing World | Artisan Select vs. Artisan Focus | Artisan Select vs. Artisan Small Cap | Artisan Select vs. Artisan Global Opportunities |
| Dodge Cox vs. Dodge Stock Fund | Dodge Cox vs. Dodge Income Fund | Dodge Cox vs. Dodge Balanced Fund | Dodge Cox vs. The Fairholme 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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