Correlation Between Fidelity Series and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Fidelity Series and Dodge Cox 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 Fidelity Series and Dodge Cox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Series 1000 and Dodge Cox Stock, you can compare the effects of market volatilities on Fidelity Series and Dodge Cox 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 Fidelity Series with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Dodge Cox.
Diversification Opportunities for Fidelity Series and Dodge Cox
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Dodge is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series 1000 and Dodge Cox Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge Cox Stock and Fidelity Series 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 Fidelity Series 1000 are associated (or correlated) with Dodge Cox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dodge Cox Stock has no effect on the direction of Fidelity Series i.e., Fidelity Series and Dodge Cox go up and down completely randomly.
Pair Corralation between Fidelity Series and Dodge Cox
Assuming the 90 days horizon Fidelity Series is expected to generate 1.85 times less return on investment than Dodge Cox. In addition to that, Fidelity Series is 1.0 times more volatile than Dodge Cox Stock. It trades about 0.12 of its total potential returns per unit of risk. Dodge Cox Stock is currently generating about 0.23 per unit of volatility. If you would invest 27,010 in Dodge Cox Stock on November 22, 2024 and sell it today you would earn a total of 653.00 from holding Dodge Cox Stock or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Series 1000 vs. Dodge Cox Stock
Performance |
| Timeline |
| Fidelity Series 1000 |
| Dodge Cox Stock |
Fidelity Series and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Dodge Cox
The main advantage of trading using opposite Fidelity Series and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series position performs unexpectedly, Dodge Cox 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 Dodge Cox will offset losses from the drop in Dodge Cox's long position.| Fidelity Series vs. Franklin Adjustable Government | Fidelity Series vs. Wilmington Municipal Bond | Fidelity Series vs. Blrc Sgy Mnp | Fidelity Series vs. California Municipal Portfolio |
| Dodge Cox vs. Dws Government Money | Dodge Cox vs. Cref Money Market | Dodge Cox vs. Putnam Money Market | Dodge Cox vs. Elfun Government Money |
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.
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