Correlation Between Dreyfus Strategic and Dreyfus Opportunistic
Can any of the company-specific risk be diversified away by investing in both Dreyfus Strategic and Dreyfus Opportunistic 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 Dreyfus Strategic and Dreyfus Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Strategic Value and Dreyfus Opportunistic Small, you can compare the effects of market volatilities on Dreyfus Strategic and Dreyfus Opportunistic 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 Dreyfus Strategic with a short position of Dreyfus Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Strategic and Dreyfus Opportunistic.
Diversification Opportunities for Dreyfus Strategic and Dreyfus Opportunistic
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dreyfus and Dreyfus is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Strategic Value and Dreyfus Opportunistic Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Opportunistic and Dreyfus Strategic 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 Dreyfus Strategic Value are associated (or correlated) with Dreyfus Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Opportunistic has no effect on the direction of Dreyfus Strategic i.e., Dreyfus Strategic and Dreyfus Opportunistic go up and down completely randomly.
Pair Corralation between Dreyfus Strategic and Dreyfus Opportunistic
Assuming the 90 days horizon Dreyfus Strategic Value is expected to generate 0.58 times more return on investment than Dreyfus Opportunistic. However, Dreyfus Strategic Value is 1.72 times less risky than Dreyfus Opportunistic. It trades about 0.13 of its potential returns per unit of risk. Dreyfus Opportunistic Small is currently generating about 0.04 per unit of risk. If you would invest 3,723 in Dreyfus Strategic Value on August 31, 2024 and sell it today you would earn a total of 1,388 from holding Dreyfus Strategic Value or generate 37.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Strategic Value vs. Dreyfus Opportunistic Small
Performance |
| Timeline |
| Dreyfus Strategic Value |
| Dreyfus Opportunistic |
Dreyfus Strategic and Dreyfus Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Strategic and Dreyfus Opportunistic
The main advantage of trading using opposite Dreyfus Strategic and Dreyfus Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Strategic position performs unexpectedly, Dreyfus Opportunistic 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 Opportunistic will offset losses from the drop in Dreyfus Opportunistic's long position.| Dreyfus Strategic vs. Eagle Mlp Strategy | Dreyfus Strategic vs. Ep Emerging Markets | Dreyfus Strategic vs. Artisan Emerging Markets | Dreyfus Strategic vs. Pnc Emerging Markets |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |