Correlation Between Fisher Investments and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Fisher Investments 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 Fisher Investments and Dodge Cox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fisher Fixed Income and Dodge International Stock, you can compare the effects of market volatilities on Fisher Investments 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 Fisher Investments with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Investments and Dodge Cox.
Diversification Opportunities for Fisher Investments and Dodge Cox
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fisher and Dodge is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Fixed Income 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 Fisher Investments 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 Fisher Fixed 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 International Stock has no effect on the direction of Fisher Investments i.e., Fisher Investments and Dodge Cox go up and down completely randomly.
Pair Corralation between Fisher Investments and Dodge Cox
Assuming the 90 days horizon Fisher Fixed Income is expected to generate 0.52 times more return on investment than Dodge Cox. However, Fisher Fixed Income is 1.93 times less risky than Dodge Cox. It trades about -0.15 of its potential returns per unit of risk. Dodge International Stock is currently generating about -0.21 per unit of risk. If you would invest 919.00 in Fisher Fixed Income on August 29, 2024 and sell it today you would lose (21.00) from holding Fisher Fixed Income or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Fixed Income vs. Dodge International Stock
Performance |
| Timeline |
| Fisher Fixed Income |
| Dodge International Stock |
Fisher Investments and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Investments and Dodge Cox
The main advantage of trading using opposite Fisher Investments and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Investments 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.| Fisher Investments vs. Vanguard Total Bond | Fisher Investments vs. Vanguard Total Bond | Fisher Investments vs. Vanguard Total Bond | Fisher Investments vs. Vanguard Total Bond |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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