Correlation Between Blue Current and Dreyfus International
Can any of the company-specific risk be diversified away by investing in both Blue Current and Dreyfus 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 Blue Current and Dreyfus International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Current Global and Dreyfus International Bond, you can compare the effects of market volatilities on Blue Current and Dreyfus 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 Blue Current with a short position of Dreyfus International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Current and Dreyfus International.
Diversification Opportunities for Blue Current and Dreyfus International
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blue and Dreyfus is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Blue Current Global and Dreyfus International Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus International and Blue Current 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 Blue Current Global are associated (or correlated) with Dreyfus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus International has no effect on the direction of Blue Current i.e., Blue Current and Dreyfus International go up and down completely randomly.
Pair Corralation between Blue Current and Dreyfus International
Assuming the 90 days horizon Blue Current Global is expected to generate 1.53 times more return on investment than Dreyfus International. However, Blue Current is 1.53 times more volatile than Dreyfus International Bond. It trades about 0.07 of its potential returns per unit of risk. Dreyfus International Bond is currently generating about 0.05 per unit of risk. If you would invest 1,540 in Blue Current Global on September 1, 2024 and sell it today you would earn a total of 89.00 from holding Blue Current Global or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Blue Current Global vs. Dreyfus International Bond
Performance |
| Timeline |
| Blue Current Global |
| Dreyfus International |
Blue Current and Dreyfus International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Current and Dreyfus International
The main advantage of trading using opposite Blue Current and Dreyfus International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Current position performs unexpectedly, Dreyfus 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 Dreyfus International will offset losses from the drop in Dreyfus International's long position.| Blue Current vs. Investec Emerging Markets | Blue Current vs. Origin Emerging Markets | Blue Current vs. Eagle Mlp Strategy | Blue Current vs. Pace International Emerging |
| Dreyfus International vs. Dreyfusstandish Global Fixed | Dreyfus International vs. Dreyfusstandish Global Fixed | Dreyfus International vs. Dreyfus High Yield | Dreyfus International vs. Dreyfus High Yield |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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