Correlation Between The Hartford and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both The Hartford 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 The Hartford 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 Capital and Dodge Cox Emerging, you can compare the effects of market volatilities on The Hartford 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 The Hartford with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Dodge Cox.
Diversification Opportunities for The Hartford and Dodge Cox
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between The and Dodge is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Capital and Dodge Cox Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge Cox Emerging and The Hartford 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 Capital 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 Emerging has no effect on the direction of The Hartford i.e., The Hartford and Dodge Cox go up and down completely randomly.
Pair Corralation between The Hartford and Dodge Cox
Assuming the 90 days horizon The Hartford Capital is expected to generate 1.1 times more return on investment than Dodge Cox. However, The Hartford is 1.1 times more volatile than Dodge Cox Emerging. It trades about 0.36 of its potential returns per unit of risk. Dodge Cox Emerging is currently generating about -0.17 per unit of risk. If you would invest 5,298 in The Hartford Capital on September 5, 2024 and sell it today you would earn a total of 320.00 from holding The Hartford Capital or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Hartford Capital vs. Dodge Cox Emerging
Performance |
| Timeline |
| Hartford Capital |
| Dodge Cox Emerging |
The Hartford and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Dodge Cox
The main advantage of trading using opposite The Hartford and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford 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.| The Hartford vs. Dodge Cox Emerging | The Hartford vs. Jpmorgan Emerging Markets | The Hartford vs. Barings Emerging Markets | The Hartford vs. Artisan Emerging Markets |
| Dodge Cox vs. Dodge Stock Fund | Dodge Cox vs. Dodge International Stock | Dodge Cox vs. Dodge Balanced Fund | Dodge Cox vs. Dodge Global Stock |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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