Correlation Between Dodge Cox and Fidelity International
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Fidelity International 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 Fidelity International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dodge Cox International and Fidelity International Enhanced, you can compare the effects of market volatilities on Dodge Cox and Fidelity International 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 Fidelity International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Fidelity International.
Diversification Opportunities for Dodge Cox and Fidelity International
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dodge and Fidelity is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Cox International and Fidelity International Enhance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International 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 Cox International are associated (or correlated) with Fidelity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of Dodge Cox i.e., Dodge Cox and Fidelity International go up and down completely randomly.
Pair Corralation between Dodge Cox and Fidelity International
If you would invest 1,067 in Fidelity International Enhanced on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Fidelity International Enhanced or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Dodge Cox International vs. Fidelity International Enhance
Performance |
| Timeline |
| Dodge Cox International |
| Fidelity International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dodge Cox and Fidelity International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Fidelity International
The main advantage of trading using opposite Dodge Cox and Fidelity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Fidelity International 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 Fidelity International will offset losses from the drop in Fidelity International's long position.| Dodge Cox vs. Dodge Stock Fund | Dodge Cox vs. Dodge Balanced Fund | Dodge Cox vs. Dodge Global Stock | Dodge Cox vs. Dodge Income Fund |
| Fidelity International vs. Fidelity International Value | Fidelity International vs. Fidelity Total International |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |