Correlation Between Dodge Cox and Lifex Inflation-protec
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Lifex Inflation-protec 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 Lifex Inflation-protec 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 Lifex Inflation Protected Income, you can compare the effects of market volatilities on Dodge Cox and Lifex Inflation-protec 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 Lifex Inflation-protec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Lifex Inflation-protec.
Diversification Opportunities for Dodge Cox and Lifex Inflation-protec
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dodge and Lifex is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dodge International Stock and Lifex Inflation Protected Inco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifex Inflation-protec 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 International Stock are associated (or correlated) with Lifex Inflation-protec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifex Inflation-protec has no effect on the direction of Dodge Cox i.e., Dodge Cox and Lifex Inflation-protec go up and down completely randomly.
Pair Corralation between Dodge Cox and Lifex Inflation-protec
Assuming the 90 days horizon Dodge Cox is expected to generate 7.53 times less return on investment than Lifex Inflation-protec. In addition to that, Dodge Cox is 2.87 times more volatile than Lifex Inflation Protected Income. It trades about 0.01 of its total potential returns per unit of risk. Lifex Inflation Protected Income is currently generating about 0.14 per unit of volatility. If you would invest 1,736 in Lifex Inflation Protected Income on September 1, 2024 and sell it today you would earn a total of 87.00 from holding Lifex Inflation Protected Income or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Dodge International Stock vs. Lifex Inflation Protected Inco
Performance |
| Timeline |
| Dodge International Stock |
| Lifex Inflation-protec |
Dodge Cox and Lifex Inflation-protec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Lifex Inflation-protec
The main advantage of trading using opposite Dodge Cox and Lifex Inflation-protec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Lifex Inflation-protec 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 Lifex Inflation-protec will offset losses from the drop in Lifex Inflation-protec's long position.| Dodge Cox vs. Dodge Stock Fund | Dodge Cox vs. Dodge Income Fund | Dodge Cox vs. Dodge Balanced Fund | Dodge Cox vs. The Fairholme Fund |
| Lifex Inflation-protec vs. Mutual Of America | Lifex Inflation-protec vs. Fpa Queens Road | Lifex Inflation-protec vs. Palm Valley Capital | Lifex Inflation-protec vs. Columbia Small 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |