Correlation Between Dodge Cox and Europacific Growth
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Europacific 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 Europacific 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 Europacific Growth Fund, you can compare the effects of market volatilities on Dodge Cox and Europacific 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 Europacific Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Europacific Growth.
Diversification Opportunities for Dodge Cox and Europacific Growth
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dodge and Europacific is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Stock Fund and Europacific Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europacific Growth 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 Europacific Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europacific Growth has no effect on the direction of Dodge Cox i.e., Dodge Cox and Europacific Growth go up and down completely randomly.
Pair Corralation between Dodge Cox and Europacific Growth
Assuming the 90 days horizon Dodge Stock Fund is expected to generate 1.33 times more return on investment than Europacific Growth. However, Dodge Cox is 1.33 times more volatile than Europacific Growth Fund. It trades about 0.16 of its potential returns per unit of risk. Europacific Growth Fund is currently generating about -0.19 per unit of risk. If you would invest 27,629 in Dodge Stock Fund on August 25, 2024 and sell it today you would earn a total of 892.00 from holding Dodge Stock Fund or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dodge Stock Fund vs. Europacific Growth Fund
Performance |
| Timeline |
| Dodge Stock Fund |
| Europacific Growth |
Dodge Cox and Europacific Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Europacific Growth
The main advantage of trading using opposite Dodge Cox and Europacific Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Europacific 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 Europacific Growth will offset losses from the drop in Europacific 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 |
| Europacific Growth vs. Growth Fund Of | Europacific Growth vs. Vanguard Institutional Index | Europacific Growth vs. Vanguard Mid Cap Index | Europacific Growth vs. Washington Mutual Investors |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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