Correlation Between Dodge International and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Dodge International and Natixis Oakmark 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 Natixis Oakmark 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 Natixis Oakmark International, you can compare the effects of market volatilities on Dodge International and Natixis Oakmark 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 Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge International and Natixis Oakmark.
Diversification Opportunities for Dodge International and Natixis Oakmark
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dodge and Natixis is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dodge International Stock and Natixis Oakmark International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Inte 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 Natixis Oakmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Oakmark Inte has no effect on the direction of Dodge International i.e., Dodge International and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Dodge International and Natixis Oakmark
Assuming the 90 days horizon Dodge International Stock is expected to generate 0.7 times more return on investment than Natixis Oakmark. However, Dodge International Stock is 1.43 times less risky than Natixis Oakmark. It trades about -0.15 of its potential returns per unit of risk. Natixis Oakmark International is currently generating about -0.14 per unit of risk. If you would invest 5,518 in Dodge International Stock on September 3, 2024 and sell it today you would lose (235.00) from holding Dodge International Stock or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dodge International Stock vs. Natixis Oakmark International
Performance |
| Timeline |
| Dodge International Stock |
| Natixis Oakmark Inte |
Dodge International and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge International and Natixis Oakmark
The main advantage of trading using opposite Dodge International and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge International position performs unexpectedly, Natixis Oakmark 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 Natixis Oakmark will offset losses from the drop in Natixis Oakmark'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 |
| Natixis Oakmark vs. Oakmark International Fund | Natixis Oakmark vs. Dodge International Stock | Natixis Oakmark vs. Oakmark International Fund | Natixis Oakmark vs. Oakmark International Fund |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |