Correlation Between Dodge Cox and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Mainstay Large 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 Mainstay Large 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 Mainstay Large Cap, you can compare the effects of market volatilities on Dodge Cox and Mainstay Large 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 Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Mainstay Large.
Diversification Opportunities for Dodge Cox and Mainstay Large
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dodge and Mainstay is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Cox Stock and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Dodge Cox i.e., Dodge Cox and Mainstay Large go up and down completely randomly.
Pair Corralation between Dodge Cox and Mainstay Large
Assuming the 90 days horizon Dodge Cox is expected to generate 1.06 times less return on investment than Mainstay Large. But when comparing it to its historical volatility, Dodge Cox Stock is 1.29 times less risky than Mainstay Large. It trades about 0.17 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 619.00 in Mainstay Large Cap on August 29, 2024 and sell it today you would earn a total of 22.00 from holding Mainstay Large Cap or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dodge Cox Stock vs. Mainstay Large Cap
Performance |
| Timeline |
| Dodge Cox Stock |
| Mainstay Large Cap |
Dodge Cox and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Mainstay Large
The main advantage of trading using opposite Dodge Cox and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Mainstay Large 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 Mainstay Large will offset losses from the drop in Mainstay Large's long position.| Dodge Cox vs. Value Fund Investor | Dodge Cox vs. HUMANA INC | Dodge Cox vs. Aquagold International | Dodge Cox vs. Barloworld Ltd ADR |
| Mainstay Large vs. Fidelity Series 1000 | Mainstay Large vs. Dana Large Cap | Mainstay Large vs. Dodge Cox Stock | Mainstay Large 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |