Correlation Between Dodge International and Artisan International
Can any of the company-specific risk be diversified away by investing in both Dodge International and Artisan 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 International and Artisan International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dodge International Stock and Artisan International Fund, you can compare the effects of market volatilities on Dodge International and Artisan 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 International with a short position of Artisan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge International and Artisan International.
Diversification Opportunities for Dodge International and Artisan International
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dodge and Artisan is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dodge International Stock and Artisan International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan International and Dodge International 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 International Stock are associated (or correlated) with Artisan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan International has no effect on the direction of Dodge International i.e., Dodge International and Artisan International go up and down completely randomly.
Pair Corralation between Dodge International and Artisan International
Assuming the 90 days horizon Dodge International Stock is expected to under-perform the Artisan International. In addition to that, Dodge International is 1.04 times more volatile than Artisan International Fund. It trades about -0.1 of its total potential returns per unit of risk. Artisan International Fund is currently generating about 0.07 per unit of volatility. If you would invest 3,025 in Artisan International Fund on September 5, 2024 and sell it today you would earn a total of 32.00 from holding Artisan International Fund or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dodge International Stock vs. Artisan International Fund
Performance |
| Timeline |
| Dodge International Stock |
| Artisan International |
Dodge International and Artisan International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge International and Artisan International
The main advantage of trading using opposite Dodge International and Artisan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge International position performs unexpectedly, Artisan 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 Artisan International will offset losses from the drop in Artisan International's long position.| Dodge International vs. Dodge Stock Fund | Dodge International vs. Dodge Income Fund | Dodge International vs. Dodge Balanced Fund | Dodge International vs. The Fairholme Fund |
| Artisan International vs. Alliancebernstein Global High | Artisan International vs. Dreyfusstandish Global Fixed | Artisan International vs. Qs Global Equity | Artisan International vs. Siit Global Managed |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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