Correlation Between Dodge Stock and Federated Mortgage
Can any of the company-specific risk be diversified away by investing in both Dodge Stock and Federated Mortgage 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 Stock and Federated Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dodge Stock Fund and Federated Mortgage Fund, you can compare the effects of market volatilities on Dodge Stock and Federated Mortgage 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 Stock with a short position of Federated Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Stock and Federated Mortgage.
Diversification Opportunities for Dodge Stock and Federated Mortgage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dodge and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DODGE STOCK FUND and FEDERATED MORTGAGE FUND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Mortgage Fund and Dodge Stock 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 Stock Fund are associated (or correlated) with Federated Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Mortgage Fund has no effect on the direction of Dodge Stock i.e., Dodge Stock and Federated Mortgage go up and down completely randomly.
Pair Corralation between Dodge Stock and Federated Mortgage
If you would invest 24,421 in Dodge Stock Fund on December 29, 2023 and sell it today you would earn a total of 1,322 from holding Dodge Stock Fund or generate 5.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
DODGE STOCK FUND vs. FEDERATED MORTGAGE FUND
Performance |
Timeline |
Dodge Stock Fund |
Federated Mortgage Fund |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Dodge Stock and Federated Mortgage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dodge Stock and Federated Mortgage
The main advantage of trading using opposite Dodge Stock and Federated Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Stock position performs unexpectedly, Federated Mortgage 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 Federated Mortgage will offset losses from the drop in Federated Mortgage's long position.Dodge Stock vs. Blackrock Sm Cap | Dodge Stock vs. Lord Abbett Diversified | Dodge Stock vs. Fidelity Advisor Diversified | Dodge Stock vs. Oppenheimer International Diversified |
Federated Mortgage vs. Morningstar Growth Etf | Federated Mortgage vs. Glg Intl Small | Federated Mortgage vs. Ab Small Cap | Federated Mortgage vs. Tfa Alphagen Growth |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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