Correlation Between Kinetics Global and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Kinetics Global 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 Kinetics Global and Dodge Cox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Global Fund and Dodge Global Stock, you can compare the effects of market volatilities on Kinetics Global 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 Kinetics Global with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Dodge Cox.
Diversification Opportunities for Kinetics Global and Dodge Cox
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinetics and Dodge is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Dodge Global Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge Global Stock and Kinetics Global 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 Kinetics Global Fund 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 Global Stock has no effect on the direction of Kinetics Global i.e., Kinetics Global and Dodge Cox go up and down completely randomly.
Pair Corralation between Kinetics Global and Dodge Cox
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 3.24 times more return on investment than Dodge Cox. However, Kinetics Global is 3.24 times more volatile than Dodge Global Stock. It trades about 0.5 of its potential returns per unit of risk. Dodge Global Stock is currently generating about 0.01 per unit of risk. If you would invest 1,477 in Kinetics Global Fund on September 2, 2024 and sell it today you would earn a total of 332.00 from holding Kinetics Global Fund or generate 22.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. Dodge Global Stock
Performance |
| Timeline |
| Kinetics Global |
| Dodge Global Stock |
Kinetics Global and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Dodge Cox
The main advantage of trading using opposite Kinetics Global and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global 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.| Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Paradigm Fund | Kinetics Global vs. Jacob Internet Fund | Kinetics Global vs. Kinetics Small Cap |
| Dodge Cox vs. Adams Diversified Equity | Dodge Cox vs. Fidelity Advisor Diversified | Dodge Cox vs. Principal Lifetime Hybrid | Dodge Cox vs. Tiaa Cref Smallmid Cap Equity |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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