Correlation Between Dodge Stock and Mfs Blended
Can any of the company-specific risk be diversified away by investing in both Dodge Stock and Mfs Blended 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 Stock and Mfs Blended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dodge Stock Fund and Mfs Blended Research, you can compare the effects of market volatilities on Dodge Stock and Mfs Blended 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 Stock with a short position of Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Stock and Mfs Blended.
Diversification Opportunities for Dodge Stock and Mfs Blended
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dodge and Mfs is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Stock Fund and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research and Dodge Stock 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 Stock Fund are associated (or correlated) with Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of Dodge Stock i.e., Dodge Stock and Mfs Blended go up and down completely randomly.
Pair Corralation between Dodge Stock and Mfs Blended
Assuming the 90 days horizon Dodge Stock Fund is expected to generate 0.87 times more return on investment than Mfs Blended. However, Dodge Stock Fund is 1.15 times less risky than Mfs Blended. It trades about -0.17 of its potential returns per unit of risk. Mfs Blended Research is currently generating about -0.15 per unit of risk. If you would invest 28,517 in Dodge Stock Fund on September 13, 2024 and sell it today you would lose (472.00) from holding Dodge Stock Fund or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dodge Stock Fund vs. Mfs Blended Research
Performance |
| Timeline |
| Dodge Stock Fund |
| Mfs Blended Research |
Dodge Stock and Mfs Blended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Stock and Mfs Blended
The main advantage of trading using opposite Dodge Stock and Mfs Blended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Stock position performs unexpectedly, Mfs Blended 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 Blended will offset losses from the drop in Mfs Blended's long position.| Dodge Stock vs. Dodge International Stock | Dodge Stock vs. Dodge Balanced Fund | Dodge Stock vs. Dodge Income Fund | Dodge Stock vs. Total Return Fund |
| Mfs Blended vs. Doubleline Yield Opportunities | Mfs Blended vs. Multisector Bond Sma | Mfs Blended vs. Alliancebernstein Bond | Mfs Blended vs. Bbh Intermediate Municipal |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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