Correlation Between Dodge Cox and Calvert International
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Calvert International 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 Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dodge International Stock and Calvert International Equity, you can compare the effects of market volatilities on Dodge Cox and Calvert International 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 Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Calvert International.
Diversification Opportunities for Dodge Cox and Calvert International
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dodge and Calvert is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dodge International Stock and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International 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 International Stock are associated (or correlated) with Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Dodge Cox i.e., Dodge Cox and Calvert International go up and down completely randomly.
Pair Corralation between Dodge Cox and Calvert International
Assuming the 90 days horizon Dodge International Stock is expected to generate 0.68 times more return on investment than Calvert International. However, Dodge International Stock is 1.46 times less risky than Calvert International. It trades about 0.13 of its potential returns per unit of risk. Calvert International Equity is currently generating about -0.06 per unit of risk. If you would invest 6,154 in Dodge International Stock on June 3, 2025 and sell it today you would earn a total of 202.00 from holding Dodge International Stock or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dodge International Stock vs. Calvert International Equity
Performance |
| Timeline |
| Dodge International Stock |
| Calvert International |
Dodge Cox and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Calvert International
The main advantage of trading using opposite Dodge Cox and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Calvert International 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 Calvert International will offset losses from the drop in Calvert International's long position.| Dodge Cox vs. Dodge Stock Fund | Dodge Cox vs. Dodge Income Fund | Dodge Cox vs. Dodge Balanced Fund | Dodge Cox vs. The Fairholme Fund |
| Calvert International vs. Calvert Equity Portfolio | Calvert International vs. Calvert Small Cap | Calvert International vs. Calvert Bond Portfolio | Calvert International vs. Calvert Large Cap |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |