Correlation Between Dodge Cox and Ivy Apollo
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Ivy Apollo 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 Ivy Apollo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dodge Cox Stock and Ivy Apollo Multi Asset, you can compare the effects of market volatilities on Dodge Cox and Ivy Apollo 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 Ivy Apollo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Ivy Apollo.
Diversification Opportunities for Dodge Cox and Ivy Apollo
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dodge and Ivy is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Cox Stock and Ivy Apollo Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Apollo Multi 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 Stock are associated (or correlated) with Ivy Apollo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Apollo Multi has no effect on the direction of Dodge Cox i.e., Dodge Cox and Ivy Apollo go up and down completely randomly.
Pair Corralation between Dodge Cox and Ivy Apollo
Assuming the 90 days horizon Dodge Cox Stock is expected to generate 1.55 times more return on investment than Ivy Apollo. However, Dodge Cox is 1.55 times more volatile than Ivy Apollo Multi Asset. It trades about 0.14 of its potential returns per unit of risk. Ivy Apollo Multi Asset is currently generating about 0.05 per unit of risk. If you would invest 25,448 in Dodge Cox Stock on September 3, 2024 and sell it today you would earn a total of 3,357 from holding Dodge Cox Stock or generate 13.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dodge Cox Stock vs. Ivy Apollo Multi Asset
Performance |
| Timeline |
| Dodge Cox Stock |
| Ivy Apollo Multi |
Dodge Cox and Ivy Apollo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Ivy Apollo
The main advantage of trading using opposite Dodge Cox and Ivy Apollo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Ivy Apollo 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 Ivy Apollo will offset losses from the drop in Ivy Apollo's long position.| Dodge Cox vs. Tekla Healthcare Opportunities | Dodge Cox vs. Health Biotchnology Portfolio | Dodge Cox vs. Eventide Healthcare Life | Dodge Cox vs. Lord Abbett Health |
| Ivy Apollo vs. Avantis Large Cap | Ivy Apollo vs. Vela Large Cap | Ivy Apollo vs. Dodge Cox Stock | Ivy Apollo vs. Fundamental Large Cap |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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