Correlation Between Hartford Growth and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Hartford 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 Hartford 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 The Hartford Growth and Dodge Cox Stock, you can compare the effects of market volatilities on Hartford 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 Hartford Growth with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Dodge Cox.
Diversification Opportunities for Hartford Growth and Dodge Cox
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hartford and Dodge is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth 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 Hartford 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 The Hartford Growth 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 Hartford Growth i.e., Hartford Growth and Dodge Cox go up and down completely randomly.
Pair Corralation between Hartford Growth and Dodge Cox
Assuming the 90 days horizon The Hartford Growth is expected to generate 0.88 times more return on investment than Dodge Cox. However, The Hartford Growth is 1.14 times less risky than Dodge Cox. It trades about 0.16 of its potential returns per unit of risk. Dodge Cox Stock is currently generating about -0.17 per unit of risk. If you would invest 1,524 in The Hartford Growth on September 14, 2024 and sell it today you would earn a total of 20.00 from holding The Hartford Growth or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Growth vs. Dodge Cox Stock
Performance |
| Timeline |
| Hartford Growth |
| Dodge Cox Stock |
Hartford Growth and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Growth and Dodge Cox
The main advantage of trading using opposite Hartford Growth and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford 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.| Hartford Growth vs. Dodge Cox Stock | Hartford Growth vs. American Mutual Fund | Hartford Growth vs. Dunham Large Cap | Hartford Growth vs. Qs Large Cap |
| Dodge Cox vs. Dodge International Stock | Dodge Cox vs. Dodge Balanced Fund | Dodge Cox vs. Dodge Income Fund | Dodge Cox vs. Total Return 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |