Correlation Between Origin Emerging and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Origin Emerging 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 Origin Emerging and Dodge Cox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Emerging Markets and Dodge Cox Emerging, you can compare the effects of market volatilities on Origin Emerging 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 Origin Emerging with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Emerging and Dodge Cox.
Diversification Opportunities for Origin Emerging and Dodge Cox
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Origin and Dodge is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Origin Emerging Markets 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 Origin Emerging 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 Origin Emerging Markets 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 Origin Emerging i.e., Origin Emerging and Dodge Cox go up and down completely randomly.
Pair Corralation between Origin Emerging and Dodge Cox
Assuming the 90 days horizon Origin Emerging Markets is expected to generate 1.14 times more return on investment than Dodge Cox. However, Origin Emerging is 1.14 times more volatile than Dodge Cox Emerging. It trades about 0.06 of its potential returns per unit of risk. Dodge Cox Emerging is currently generating about 0.07 per unit of risk. If you would invest 915.00 in Origin Emerging Markets on September 14, 2024 and sell it today you would earn a total of 136.00 from holding Origin Emerging Markets or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Emerging Markets vs. Dodge Cox Emerging
Performance |
| Timeline |
| Origin Emerging Markets |
| Dodge Cox Emerging |
Origin Emerging and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Emerging and Dodge Cox
The main advantage of trading using opposite Origin Emerging and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Emerging 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.| Origin Emerging vs. Western Asset Diversified | Origin Emerging vs. Ep Emerging Markets | Origin Emerging vs. Ab All Market | Origin Emerging vs. Rbc Emerging Markets |
| Dodge Cox vs. Ashmore Emerging Markets | Dodge Cox vs. T Rowe Price | Dodge Cox vs. Calvert Developed Market | Dodge Cox vs. Origin Emerging Markets |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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