Correlation Between Calvert Developed and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Calvert Developed 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 Calvert Developed and Dodge Cox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Developed Market and Dodge Cox Emerging, you can compare the effects of market volatilities on Calvert Developed 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 Calvert Developed with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Developed and Dodge Cox.
Diversification Opportunities for Calvert Developed and Dodge Cox
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and Dodge is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Developed Market and Dodge Cox Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge Cox Emerging and Calvert Developed 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 Calvert Developed Market 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 Cox Emerging has no effect on the direction of Calvert Developed i.e., Calvert Developed and Dodge Cox go up and down completely randomly.
Pair Corralation between Calvert Developed and Dodge Cox
Assuming the 90 days horizon Calvert Developed Market is expected to generate 0.94 times more return on investment than Dodge Cox. However, Calvert Developed Market is 1.07 times less risky than Dodge Cox. It trades about 0.07 of its potential returns per unit of risk. Dodge Cox Emerging is currently generating about 0.06 per unit of risk. If you would invest 2,405 in Calvert Developed Market on September 14, 2024 and sell it today you would earn a total of 719.00 from holding Calvert Developed Market or generate 29.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Developed Market vs. Dodge Cox Emerging
Performance |
| Timeline |
| Calvert Developed Market |
| Dodge Cox Emerging |
Calvert Developed and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Developed and Dodge Cox
The main advantage of trading using opposite Calvert Developed and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Developed 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.| Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Mid Cap | Calvert Developed vs. Calvert Short Duration |
| Dodge Cox vs. Ashmore Emerging Markets | Dodge Cox vs. T Rowe Price | Dodge Cox vs. Calvert Developed Market | Dodge Cox vs. Origin Emerging Markets |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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