Correlation Between Dodge Cox and Marketfield Fund
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Marketfield Fund 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 Marketfield Fund 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 Marketfield Fund Marketfield, you can compare the effects of market volatilities on Dodge Cox and Marketfield Fund 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 Marketfield Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Marketfield Fund.
Diversification Opportunities for Dodge Cox and Marketfield Fund
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dodge and Marketfield is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Cox Emerging and Marketfield Fund Marketfield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marketfield Fund Mar 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 Marketfield Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marketfield Fund Mar has no effect on the direction of Dodge Cox i.e., Dodge Cox and Marketfield Fund go up and down completely randomly.
Pair Corralation between Dodge Cox and Marketfield Fund
Assuming the 90 days horizon Dodge Cox Emerging is expected to under-perform the Marketfield Fund. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dodge Cox Emerging is 1.09 times less risky than Marketfield Fund. The mutual fund trades about -0.16 of its potential returns per unit of risk. The Marketfield Fund Marketfield is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,319 in Marketfield Fund Marketfield on September 5, 2024 and sell it today you would earn a total of 97.00 from holding Marketfield Fund Marketfield or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dodge Cox Emerging vs. Marketfield Fund Marketfield
Performance |
| Timeline |
| Dodge Cox Emerging |
| Marketfield Fund Mar |
Dodge Cox and Marketfield Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Marketfield Fund
The main advantage of trading using opposite Dodge Cox and Marketfield Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Marketfield Fund 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 Marketfield Fund will offset losses from the drop in Marketfield Fund's long position.| Dodge Cox vs. Dodge Stock Fund | Dodge Cox vs. Dodge International Stock | Dodge Cox vs. Dodge Balanced Fund | Dodge Cox vs. Dodge Global Stock |
| Marketfield Fund vs. T Rowe Price | Marketfield Fund vs. T Rowe Price | Marketfield Fund vs. Ep Emerging Markets | Marketfield Fund vs. Dodge Cox Emerging |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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