Correlation Between Dodge Cox and Nuveen New
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Nuveen New 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 Nuveen New 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 Nuveen New Jersey, you can compare the effects of market volatilities on Dodge Cox and Nuveen New 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 Nuveen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Nuveen New.
Diversification Opportunities for Dodge Cox and Nuveen New
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dodge and Nuveen is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Cox Stock and Nuveen New Jersey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen New Jersey 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 Nuveen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen New Jersey has no effect on the direction of Dodge Cox i.e., Dodge Cox and Nuveen New go up and down completely randomly.
Pair Corralation between Dodge Cox and Nuveen New
Assuming the 90 days horizon Dodge Cox Stock is expected to generate 2.96 times more return on investment than Nuveen New. However, Dodge Cox is 2.96 times more volatile than Nuveen New Jersey. It trades about 0.14 of its potential returns per unit of risk. Nuveen New Jersey is currently generating about 0.13 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. Nuveen New Jersey
Performance |
| Timeline |
| Dodge Cox Stock |
| Nuveen New Jersey |
Dodge Cox and Nuveen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Nuveen New
The main advantage of trading using opposite Dodge Cox and Nuveen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Nuveen New 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 Nuveen New will offset losses from the drop in Nuveen New'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 |
| Nuveen New vs. Aqr Large Cap | Nuveen New vs. Tax Managed Large Cap | Nuveen New vs. Dodge Cox Stock | Nuveen New vs. Qs 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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