Correlation Between Barings Global and Dreyfus Active
Can any of the company-specific risk be diversified away by investing in both Barings Global and Dreyfus Active 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 Barings Global and Dreyfus Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Dreyfus Active Midcap, you can compare the effects of market volatilities on Barings Global and Dreyfus Active 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 Barings Global with a short position of Dreyfus Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Dreyfus Active.
Diversification Opportunities for Barings Global and Dreyfus Active
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Barings and Dreyfus is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Dreyfus Active Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Active Midcap and Barings Global 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 Barings Global Floating are associated (or correlated) with Dreyfus Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Active Midcap has no effect on the direction of Barings Global i.e., Barings Global and Dreyfus Active go up and down completely randomly.
Pair Corralation between Barings Global and Dreyfus Active
Assuming the 90 days horizon Barings Global is expected to generate 5.08 times less return on investment than Dreyfus Active. But when comparing it to its historical volatility, Barings Global Floating is 6.15 times less risky than Dreyfus Active. It trades about 0.17 of its potential returns per unit of risk. Dreyfus Active Midcap is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 5,858 in Dreyfus Active Midcap on September 1, 2024 and sell it today you would earn a total of 985.00 from holding Dreyfus Active Midcap or generate 16.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Barings Global Floating vs. Dreyfus Active Midcap
Performance |
| Timeline |
| Barings Global Floating |
| Dreyfus Active Midcap |
Barings Global and Dreyfus Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Dreyfus Active
The main advantage of trading using opposite Barings Global and Dreyfus Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Dreyfus Active 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 Active will offset losses from the drop in Dreyfus Active's long position.| Barings Global vs. Ashmore Emerging Markets | Barings Global vs. Dws Emerging Markets | Barings Global vs. Rbc Emerging Markets | Barings Global vs. Franklin Emerging Market |
| Dreyfus Active vs. Franklin Lifesmart Retirement | Dreyfus Active vs. Moderately Aggressive Balanced | Dreyfus Active vs. Franklin Lifesmart Retirement | Dreyfus Active vs. Multimanager Lifestyle Moderate |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |