Correlation Between Dodge Cox and Mfs International
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Mfs 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 Dodge Cox and Mfs International 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 Mfs International New, you can compare the effects of market volatilities on Dodge Cox and Mfs 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 Dodge Cox with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Mfs International.
Diversification Opportunities for Dodge Cox and Mfs International
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dodge and Mfs is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Cox Emerging and Mfs International New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International New 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 Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International New has no effect on the direction of Dodge Cox i.e., Dodge Cox and Mfs International go up and down completely randomly.
Pair Corralation between Dodge Cox and Mfs International
Assuming the 90 days horizon Dodge Cox Emerging is expected to generate 1.26 times more return on investment than Mfs International. However, Dodge Cox is 1.26 times more volatile than Mfs International New. It trades about 0.05 of its potential returns per unit of risk. Mfs International New is currently generating about 0.04 per unit of risk. If you would invest 735.00 in Dodge Cox Emerging on August 30, 2024 and sell it today you would earn a total of 173.00 from holding Dodge Cox Emerging or generate 23.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dodge Cox Emerging vs. Mfs International New
Performance |
| Timeline |
| Dodge Cox Emerging |
| Mfs International New |
Dodge Cox and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Mfs International
The main advantage of trading using opposite Dodge Cox and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Mfs 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 Mfs International will offset losses from the drop in Mfs International's long position.| Dodge Cox vs. Vanguard Emerging Markets | Dodge Cox vs. Vanguard Emerging Markets | Dodge Cox vs. HUMANA INC | Dodge Cox vs. Aquagold International |
| Mfs International vs. T Rowe Price | Mfs International vs. Artisan Emerging Markets | Mfs International vs. Angel Oak Multi Strategy | Mfs International 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stocks Directory Find actively traded stocks across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |