Correlation Between Dodge Cox and Lsv Us
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Lsv Us 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 Lsv Us 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 Lsv Managed Volatility, you can compare the effects of market volatilities on Dodge Cox and Lsv Us 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 Lsv Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Lsv Us.
Diversification Opportunities for Dodge Cox and Lsv Us
Very weak diversification
The 3 months correlation between Dodge and Lsv is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Cox Stock and Lsv Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lsv Managed Volatility 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 Lsv Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lsv Managed Volatility has no effect on the direction of Dodge Cox i.e., Dodge Cox and Lsv Us go up and down completely randomly.
Pair Corralation between Dodge Cox and Lsv Us
Assuming the 90 days horizon Dodge Cox Stock is expected to generate 0.52 times more return on investment than Lsv Us. However, Dodge Cox Stock is 1.94 times less risky than Lsv Us. It trades about 0.08 of its potential returns per unit of risk. Lsv Managed Volatility is currently generating about -0.09 per unit of risk. If you would invest 26,008 in Dodge Cox Stock on October 31, 2024 and sell it today you would earn a total of 1,236 from holding Dodge Cox Stock or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dodge Cox Stock vs. Lsv Managed Volatility
Performance |
| Timeline |
| Dodge Cox Stock |
| Lsv Managed Volatility |
Dodge Cox and Lsv Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Lsv Us
The main advantage of trading using opposite Dodge Cox and Lsv Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Lsv Us 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 Lsv Us will offset losses from the drop in Lsv Us' long position.| Dodge Cox vs. Dodge Stock Fund | Dodge Cox vs. Dodge International Stock | Dodge Cox vs. Dodge Cox Emerging | Dodge Cox vs. Dodge Balanced Fund |
| Lsv Us vs. Ubs Money Series | Lsv Us vs. Cref Money Market | Lsv Us vs. Schwab Government Money | Lsv Us vs. Hsbc Treasury Money |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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