Correlation Between Harbor Bond and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Harbor Bond 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 Harbor Bond and Dodge Cox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor Bond Fund and Dodge International Stock, you can compare the effects of market volatilities on Harbor Bond 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 Harbor Bond with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Bond and Dodge Cox.
Diversification Opportunities for Harbor Bond and Dodge Cox
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Harbor and Dodge is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Bond Fund and Dodge International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge International Stock and Harbor Bond 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 Harbor Bond Fund 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 International Stock has no effect on the direction of Harbor Bond i.e., Harbor Bond and Dodge Cox go up and down completely randomly.
Pair Corralation between Harbor Bond and Dodge Cox
Assuming the 90 days horizon Harbor Bond Fund is expected to generate 0.45 times more return on investment than Dodge Cox. However, Harbor Bond Fund is 2.24 times less risky than Dodge Cox. It trades about -0.05 of its potential returns per unit of risk. Dodge International Stock is currently generating about -0.18 per unit of risk. If you would invest 1,017 in Harbor Bond Fund on August 24, 2024 and sell it today you would lose (4.00) from holding Harbor Bond Fund or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Harbor Bond Fund vs. Dodge International Stock
Performance |
| Timeline |
| Harbor Bond Fund |
| Dodge International Stock |
Harbor Bond and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor Bond and Dodge Cox
The main advantage of trading using opposite Harbor Bond and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Bond 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.| Harbor Bond vs. Fidelity Vertible Securities | Harbor Bond vs. Virtus Convertible | Harbor Bond vs. Mainstay Vertible Fund | Harbor Bond vs. Calamos Dynamic Convertible |
| Dodge Cox vs. Dodge Stock Fund | Dodge Cox vs. Dodge Income Fund | Dodge Cox vs. Dodge Balanced Fund | Dodge Cox vs. The Fairholme Fund |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |