Correlation Between Dodge Cox and Amg Yacktman
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Amg Yacktman 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 Yacktman 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 Yacktman Special, you can compare the effects of market volatilities on Dodge Cox and Amg Yacktman 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 Yacktman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Amg Yacktman.
Diversification Opportunities for Dodge Cox and Amg Yacktman
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dodge and Amg is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Cox Stock and Amg Yacktman Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Yacktman Special 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 Yacktman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Yacktman Special has no effect on the direction of Dodge Cox i.e., Dodge Cox and Amg Yacktman go up and down completely randomly.
Pair Corralation between Dodge Cox and Amg Yacktman
Assuming the 90 days horizon Dodge Cox Stock is expected to under-perform the Amg Yacktman. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dodge Cox Stock is 1.48 times less risky than Amg Yacktman. The mutual fund trades about -0.21 of its potential returns per unit of risk. The Amg Yacktman Special is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,106 in Amg Yacktman Special on September 12, 2024 and sell it today you would earn a total of 19.00 from holding Amg Yacktman Special or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dodge Cox Stock vs. Amg Yacktman Special
Performance |
| Timeline |
| Dodge Cox Stock |
| Amg Yacktman Special |
Dodge Cox and Amg Yacktman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Amg Yacktman
The main advantage of trading using opposite Dodge Cox and Amg Yacktman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Amg Yacktman 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 Yacktman will offset losses from the drop in Amg Yacktman's long position.| Dodge Cox vs. Needham Aggressive Growth | Dodge Cox vs. Alliancebernstein Global High | Dodge Cox vs. Ppm High Yield | Dodge Cox vs. Siit High Yield |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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