Correlation Between Dodge International and At Equity
Can any of the company-specific risk be diversified away by investing in both Dodge International and At Equity 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 At Equity 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 At Equity Income, you can compare the effects of market volatilities on Dodge International and At Equity 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 At Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge International and At Equity.
Diversification Opportunities for Dodge International and At Equity
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dodge and AWYIX is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dodge International Stock and At Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on At Equity Income 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 At Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of At Equity Income has no effect on the direction of Dodge International i.e., Dodge International and At Equity go up and down completely randomly.
Pair Corralation between Dodge International and At Equity
Assuming the 90 days horizon Dodge International Stock is expected to generate 0.76 times more return on investment than At Equity. However, Dodge International Stock is 1.32 times less risky than At Equity. It trades about 0.06 of its potential returns per unit of risk. At Equity Income is currently generating about -0.03 per unit of risk. If you would invest 5,274 in Dodge International Stock on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Dodge International Stock or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dodge International Stock vs. At Equity Income
Performance |
| Timeline |
| Dodge International Stock |
| At Equity Income |
Dodge International and At Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge International and At Equity
The main advantage of trading using opposite Dodge International and At Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge International position performs unexpectedly, At Equity 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 At Equity will offset losses from the drop in At Equity'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 |
| At Equity vs. Invesco Disciplined Equity | At Equity vs. Cibc Atlas All | At Equity vs. At Income Opportunities | At Equity vs. At Mid Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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