Correlation Between Doubleline Emerging and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Doubleline 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 Doubleline 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 Doubleline Emerging Markets and Dodge Global Stock, you can compare the effects of market volatilities on Doubleline 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 Doubleline Emerging with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Emerging and Dodge Cox.
Diversification Opportunities for Doubleline Emerging and Dodge Cox
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Doubleline and Dodge is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Emerging Markets 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 Doubleline 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 Doubleline 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 Global Stock has no effect on the direction of Doubleline Emerging i.e., Doubleline Emerging and Dodge Cox go up and down completely randomly.
Pair Corralation between Doubleline Emerging and Dodge Cox
Assuming the 90 days horizon Doubleline Emerging is expected to generate 1.24 times less return on investment than Dodge Cox. But when comparing it to its historical volatility, Doubleline Emerging Markets is 6.52 times less risky than Dodge Cox. It trades about 0.57 of its potential returns per unit of risk. Dodge Global Stock is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,562 in Dodge Global Stock on June 12, 2025 and sell it today you would earn a total of 66.00 from holding Dodge Global Stock or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Emerging Markets vs. Dodge Global Stock
Performance |
| Timeline |
| Doubleline Emerging |
| Dodge Global Stock |
Doubleline Emerging and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Emerging and Dodge Cox
The main advantage of trading using opposite Doubleline Emerging and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline 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.| Doubleline Emerging vs. Calvert Bond Portfolio | Doubleline Emerging vs. Transamerica Intermediate Muni | Doubleline Emerging vs. Blrc Sgy Mnp | Doubleline Emerging vs. Jhvit Core Bond |
| Dodge Cox vs. Pace Strategic Fixed | Dodge Cox vs. Calvert Bond Portfolio | Dodge Cox vs. Artisan High Income | Dodge Cox vs. Ab Bond Inflation |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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