Correlation Between Dodge Cox and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Eagle Growth 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 Eagle Growth 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 Eagle Growth Income, you can compare the effects of market volatilities on Dodge Cox and Eagle Growth 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 Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Eagle Growth.
Diversification Opportunities for Dodge Cox and Eagle Growth
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dodge and Eagle is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Stock Fund and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income 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 Stock Fund are associated (or correlated) with Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Dodge Cox i.e., Dodge Cox and Eagle Growth go up and down completely randomly.
Pair Corralation between Dodge Cox and Eagle Growth
If you would invest 25,227 in Dodge Stock Fund on August 25, 2024 and sell it today you would earn a total of 3,294 from holding Dodge Stock Fund or generate 13.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Dodge Stock Fund vs. Eagle Growth Income
Performance |
| Timeline |
| Dodge Stock Fund |
| Eagle Growth Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dodge Cox and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Eagle Growth
The main advantage of trading using opposite Dodge Cox and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Eagle Growth 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 Eagle Growth will offset losses from the drop in Eagle Growth's long position.| Dodge Cox vs. Dodge International Stock | Dodge Cox vs. Dodge Balanced Fund | Dodge Cox vs. Dodge Income Fund | Dodge Cox vs. Total Return Fund |
| Eagle Growth vs. The Hartford Equity | Eagle Growth vs. Scharf Fund Retail | Eagle Growth vs. Dodge International Stock | Eagle Growth vs. Gmo Equity Allocation |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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