Correlation Between Bny Mellon and Dreyfus Floating
Can any of the company-specific risk be diversified away by investing in both Bny Mellon and Dreyfus Floating 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 Bny Mellon and Dreyfus Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bny Mellon Short and Dreyfus Floating Rate, you can compare the effects of market volatilities on Bny Mellon and Dreyfus Floating 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 Bny Mellon with a short position of Dreyfus Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bny Mellon and Dreyfus Floating.
Diversification Opportunities for Bny Mellon and Dreyfus Floating
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bny and Dreyfus is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bny Mellon Short and Dreyfus Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Floating Rate and Bny Mellon 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 Bny Mellon Short are associated (or correlated) with Dreyfus Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Floating Rate has no effect on the direction of Bny Mellon i.e., Bny Mellon and Dreyfus Floating go up and down completely randomly.
Pair Corralation between Bny Mellon and Dreyfus Floating
Assuming the 90 days horizon Bny Mellon is expected to generate 1.46 times less return on investment than Dreyfus Floating. In addition to that, Bny Mellon is 1.95 times more volatile than Dreyfus Floating Rate. It trades about 0.18 of its total potential returns per unit of risk. Dreyfus Floating Rate is currently generating about 0.5 per unit of volatility. If you would invest 1,074 in Dreyfus Floating Rate on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Dreyfus Floating Rate or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bny Mellon Short vs. Dreyfus Floating Rate
Performance |
| Timeline |
| Bny Mellon Short |
| Dreyfus Floating Rate |
Bny Mellon and Dreyfus Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bny Mellon and Dreyfus Floating
The main advantage of trading using opposite Bny Mellon and Dreyfus Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bny Mellon position performs unexpectedly, Dreyfus Floating 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 Floating will offset losses from the drop in Dreyfus Floating's long position.| Bny Mellon vs. Massmutual Premier Diversified | Bny Mellon vs. Lord Abbett Diversified | Bny Mellon vs. Calvert Conservative Allocation | Bny Mellon vs. Prudential Core Conservative |
| Dreyfus Floating vs. Dreyfusstandish Global Fixed | Dreyfus Floating vs. Dreyfusstandish Global Fixed | Dreyfus Floating vs. Dreyfus High Yield | Dreyfus Floating 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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