Correlation Between Dodge Cox and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Amg Managers 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 Amg Managers 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 Amg Managers Centersquare, you can compare the effects of market volatilities on Dodge Cox and Amg Managers 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 Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Amg Managers.
Diversification Opportunities for Dodge Cox and Amg Managers
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dodge and Amg is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Cox Stock and Amg Managers Centersquare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Centersquare 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 Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Centersquare has no effect on the direction of Dodge Cox i.e., Dodge Cox and Amg Managers go up and down completely randomly.
Pair Corralation between Dodge Cox and Amg Managers
Assuming the 90 days horizon Dodge Cox Stock is expected to generate 0.86 times more return on investment than Amg Managers. However, Dodge Cox Stock is 1.17 times less risky than Amg Managers. It trades about 0.12 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about -0.06 per unit of risk. If you would invest 27,188 in Dodge Cox Stock on August 25, 2024 and sell it today you would earn a total of 1,144 from holding Dodge Cox Stock or generate 4.21% 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. Amg Managers Centersquare
Performance |
| Timeline |
| Dodge Cox Stock |
| Amg Managers Centersquare |
Dodge Cox and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Amg Managers
The main advantage of trading using opposite Dodge Cox and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Dodge Cox vs. Commonwealth Global Fund | Dodge Cox vs. Rbb Fund Trust | Dodge Cox vs. Kinetics Global Fund | Dodge Cox vs. The Hartford Global |
| Amg Managers vs. T Rowe Price | Amg Managers vs. Massmutual Select T | Amg Managers vs. Dodge Cox Stock | Amg Managers vs. T Rowe Price |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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