Correlation Between Dreyfus Bond and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Dreyfus Bond and Barings Emerging 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 Bond and Barings Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Bond Market and Barings Emerging Markets, you can compare the effects of market volatilities on Dreyfus Bond and Barings Emerging 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 Bond with a short position of Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Bond and Barings Emerging.
Diversification Opportunities for Dreyfus Bond and Barings Emerging
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dreyfus and Barings is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Bond Market and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets and Dreyfus Bond 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 Bond Market are associated (or correlated) with Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Dreyfus Bond i.e., Dreyfus Bond and Barings Emerging go up and down completely randomly.
Pair Corralation between Dreyfus Bond and Barings Emerging
Assuming the 90 days horizon Dreyfus Bond is expected to generate 53.75 times less return on investment than Barings Emerging. In addition to that, Dreyfus Bond is 1.17 times more volatile than Barings Emerging Markets. It trades about 0.0 of its total potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.08 per unit of volatility. If you would invest 743.00 in Barings Emerging Markets on October 21, 2024 and sell it today you would earn a total of 3.00 from holding Barings Emerging Markets or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Bond Market vs. Barings Emerging Markets
Performance |
| Timeline |
| Dreyfus Bond Market |
| Barings Emerging Markets |
Dreyfus Bond and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Bond and Barings Emerging
The main advantage of trading using opposite Dreyfus Bond and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Bond position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging's long position.| Dreyfus Bond vs. Baron Real Estate | Dreyfus Bond vs. Nexpoint Real Estate | Dreyfus Bond vs. Forum Real Estate | Dreyfus Bond vs. Tiaa Cref Real Estate |
| Barings Emerging vs. Ubs Money Series | Barings Emerging vs. Putnam Money Market | Barings Emerging vs. Ab Government Exchange | Barings Emerging vs. Pioneer Money Market |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |