Correlation Between Dodge Cox and Marsico Global
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Marsico Global 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 Marsico Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dodge Global Stock and Marsico Global Fund, you can compare the effects of market volatilities on Dodge Cox and Marsico Global 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 Marsico Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Marsico Global.
Diversification Opportunities for Dodge Cox and Marsico Global
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dodge and Marsico is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Global Stock and Marsico Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marsico Global 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 Global Stock are associated (or correlated) with Marsico Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marsico Global has no effect on the direction of Dodge Cox i.e., Dodge Cox and Marsico Global go up and down completely randomly.
Pair Corralation between Dodge Cox and Marsico Global
Assuming the 90 days horizon Dodge Global Stock is expected to under-perform the Marsico Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dodge Global Stock is 1.64 times less risky than Marsico Global. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Marsico Global Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,536 in Marsico Global Fund on August 24, 2024 and sell it today you would earn a total of 55.00 from holding Marsico Global Fund or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dodge Global Stock vs. Marsico Global Fund
Performance |
| Timeline |
| Dodge Global Stock |
| Marsico Global |
Dodge Cox and Marsico Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Marsico Global
The main advantage of trading using opposite Dodge Cox and Marsico Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Marsico Global 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 Marsico Global will offset losses from the drop in Marsico Global's long position.| Dodge Cox vs. Franklin Mutual Global | Dodge Cox vs. T Rowe Price | Dodge Cox vs. HUMANA INC | Dodge Cox vs. Aquagold International |
| Marsico Global vs. Marsico 21st Century | Marsico Global vs. Aberdeen Select International | Marsico Global vs. Marsico International Opportunities | Marsico Global vs. Dodge Global Stock |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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