Correlation Between Eagle Growth and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Eagle Growth 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 Eagle Growth and Dodge Cox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Growth Income and Dodge Cox Stock, you can compare the effects of market volatilities on Eagle Growth 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 Eagle Growth with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Growth and Dodge Cox.
Diversification Opportunities for Eagle Growth and Dodge Cox
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Dodge is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Growth Income 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 Eagle Growth 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 Eagle Growth Income 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 Eagle Growth i.e., Eagle Growth and Dodge Cox go up and down completely randomly.
Pair Corralation between Eagle Growth and Dodge Cox
Assuming the 90 days horizon Eagle Growth Income is expected to generate 1.01 times more return on investment than Dodge Cox. However, Eagle Growth is 1.01 times more volatile than Dodge Cox Stock. It trades about 0.16 of its potential returns per unit of risk. Dodge Cox Stock is currently generating about 0.15 per unit of risk. If you would invest 2,131 in Eagle Growth Income on September 2, 2024 and sell it today you would earn a total of 324.00 from holding Eagle Growth Income or generate 15.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Growth Income vs. Dodge Cox Stock
Performance |
| Timeline |
| Eagle Growth Income |
| Dodge Cox Stock |
Eagle Growth and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Growth and Dodge Cox
The main advantage of trading using opposite Eagle Growth and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Growth 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.| Eagle Growth vs. Chartwell Short Duration | Eagle Growth vs. Carillon Chartwell Short | Eagle Growth vs. Chartwell Short Duration | Eagle Growth vs. Carillon Chartwell Short |
| Dodge Cox vs. Omni Small Cap Value | Dodge Cox vs. T Rowe Price | Dodge Cox vs. Ab Centrated Growth | Dodge Cox vs. Tax Managed Mid Small |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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