Correlation Between Dodge Cox and Wilmington Funds
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Wilmington Funds 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 Wilmington Funds 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 Wilmington Funds , you can compare the effects of market volatilities on Dodge Cox and Wilmington Funds 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 Wilmington Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Wilmington Funds.
Diversification Opportunities for Dodge Cox and Wilmington Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dodge and Wilmington is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Cox Stock and Wilmington Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Funds 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 Wilmington Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Funds has no effect on the direction of Dodge Cox i.e., Dodge Cox and Wilmington Funds go up and down completely randomly.
Pair Corralation between Dodge Cox and Wilmington Funds
Assuming the 90 days horizon Dodge Cox is expected to generate 9.15 times less return on investment than Wilmington Funds. But when comparing it to its historical volatility, Dodge Cox Stock is 23.22 times less risky than Wilmington Funds. It trades about 0.09 of its potential returns per unit of risk. Wilmington Funds is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 91.00 in Wilmington Funds on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Wilmington Funds or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
Dodge Cox Stock vs. Wilmington Funds
Performance |
| Timeline |
| Dodge Cox Stock |
| Wilmington Funds |
Dodge Cox and Wilmington Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Wilmington Funds
The main advantage of trading using opposite Dodge Cox and Wilmington Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Wilmington Funds 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 Wilmington Funds will offset losses from the drop in Wilmington Funds' long position.| Dodge Cox vs. Morningstar Unconstrained Allocation | Dodge Cox vs. Aqr Large Cap | Dodge Cox vs. Fisher Large Cap |
| Wilmington Funds vs. Dodge Cox Stock | Wilmington Funds vs. Old Westbury Large | Wilmington Funds vs. Morningstar Unconstrained Allocation | Wilmington Funds vs. Touchstone 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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