Correlation Between Dreyfus Strategic and Eagle Mlp
Can any of the company-specific risk be diversified away by investing in both Dreyfus Strategic and Eagle Mlp 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 Eagle Mlp 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 Eagle Mlp Strategy, you can compare the effects of market volatilities on Dreyfus Strategic and Eagle Mlp 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 Eagle Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Strategic and Eagle Mlp.
Diversification Opportunities for Dreyfus Strategic and Eagle Mlp
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dreyfus and Eagle is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Strategic Value and Eagle Mlp Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mlp Strategy 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 Eagle Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mlp Strategy has no effect on the direction of Dreyfus Strategic i.e., Dreyfus Strategic and Eagle Mlp go up and down completely randomly.
Pair Corralation between Dreyfus Strategic and Eagle Mlp
Assuming the 90 days horizon Dreyfus Strategic is expected to generate 1.77 times less return on investment than Eagle Mlp. But when comparing it to its historical volatility, Dreyfus Strategic Value is 1.31 times less risky than Eagle Mlp. It trades about 0.09 of its potential returns per unit of risk. Eagle Mlp Strategy is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 634.00 in Eagle Mlp Strategy on September 2, 2024 and sell it today you would earn a total of 497.00 from holding Eagle Mlp Strategy or generate 78.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Strategic Value vs. Eagle Mlp Strategy
Performance |
| Timeline |
| Dreyfus Strategic Value |
| Eagle Mlp Strategy |
Dreyfus Strategic and Eagle Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Strategic and Eagle Mlp
The main advantage of trading using opposite Dreyfus Strategic and Eagle Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Strategic position performs unexpectedly, Eagle Mlp 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 Eagle Mlp will offset losses from the drop in Eagle Mlp's long position.| Dreyfus Strategic vs. Dreyfusstandish Global Fixed | Dreyfus Strategic vs. Dreyfusstandish Global Fixed | Dreyfus Strategic vs. Dreyfus High Yield | Dreyfus Strategic vs. Dreyfus High Yield |
| Eagle Mlp vs. Needham Aggressive Growth | Eagle Mlp vs. Franklin High Income | Eagle Mlp vs. Artisan High Income | Eagle Mlp vs. Federated Institutional High |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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