Correlation Between Dodge Cox and Jacob Internet

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Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Jacob Internet 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 Dodge Cox and Jacob Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dodge Cox Emerging and Jacob Internet Fund, you can compare the effects of market volatilities on Dodge Cox and Jacob Internet 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 Dodge Cox with a short position of Jacob Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Jacob Internet.

Diversification Opportunities for Dodge Cox and Jacob Internet

-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between Dodge and Jacob is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Cox Emerging and Jacob Internet Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Internet and Dodge Cox 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 Dodge Cox Emerging are associated (or correlated) with Jacob Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Internet has no effect on the direction of Dodge Cox i.e., Dodge Cox and Jacob Internet go up and down completely randomly.

Pair Corralation between Dodge Cox and Jacob Internet

Assuming the 90 days horizon Dodge Cox Emerging is expected to generate 0.4 times more return on investment than Jacob Internet. However, Dodge Cox Emerging is 2.49 times less risky than Jacob Internet. It trades about 0.19 of its potential returns per unit of risk. Jacob Internet Fund is currently generating about -0.08 per unit of risk. If you would invest  1,091  in Dodge Cox Emerging on September 5, 2025 and sell it today you would earn a total of  102.00  from holding Dodge Cox Emerging or generate 9.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Dodge Cox Emerging  vs.  Jacob Internet Fund

 Performance 
       Timeline  
Dodge Cox Emerging 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Dodge Cox Emerging are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, Dodge Cox may actually be approaching a critical reversion point that can send shares even higher in January 2026.
Jacob Internet 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Jacob Internet Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Dodge Cox and Jacob Internet Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dodge Cox and Jacob Internet

The main advantage of trading using opposite Dodge Cox and Jacob Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Jacob Internet 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 Jacob Internet will offset losses from the drop in Jacob Internet's long position.
The idea behind Dodge Cox Emerging and Jacob Internet Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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