Correlation Between Pimco Emerging and Dodge Cox
Can any of the company-specific risk be diversified away by investing in both Pimco 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 Pimco 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 Pimco Emerging Markets and Dodge Global Bond, you can compare the effects of market volatilities on Pimco 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 Pimco Emerging with a short position of Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Emerging and Dodge Cox.
Diversification Opportunities for Pimco Emerging and Dodge Cox
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Dodge is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Emerging Markets and Dodge Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge Global Bond and Pimco 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 Pimco 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 Bond has no effect on the direction of Pimco Emerging i.e., Pimco Emerging and Dodge Cox go up and down completely randomly.
Pair Corralation between Pimco Emerging and Dodge Cox
Assuming the 90 days horizon Pimco Emerging Markets is expected to generate 1.08 times more return on investment than Dodge Cox. However, Pimco Emerging is 1.08 times more volatile than Dodge Global Bond. It trades about 0.26 of its potential returns per unit of risk. Dodge Global Bond is currently generating about 0.24 per unit of risk. If you would invest 612.00 in Pimco Emerging Markets on June 7, 2025 and sell it today you would earn a total of 28.00 from holding Pimco Emerging Markets or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Emerging Markets vs. Dodge Global Bond
Performance |
| Timeline |
| Pimco Emerging Markets |
| Dodge Global Bond |
Pimco Emerging and Dodge Cox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Emerging and Dodge Cox
The main advantage of trading using opposite Pimco Emerging and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco 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.| Pimco Emerging vs. Valic Company I | Pimco Emerging vs. Perkins Small Cap | Pimco Emerging vs. Northern Small Cap | Pimco Emerging vs. Small Cap Value Fund |
| Dodge Cox vs. Dodge Global Stock | Dodge Cox vs. Dodge Cox Emerging | Dodge Cox vs. Dodge Income Fund | Dodge Cox vs. Hotchkis Wiley High |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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