Correlation Between Dreyfusthe Boston and Vaneck Emerging

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Can any of the company-specific risk be diversified away by investing in both Dreyfusthe Boston and Vaneck 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 Dreyfusthe Boston and Vaneck Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfusthe Boston Pany and Vaneck Emerging Markets, you can compare the effects of market volatilities on Dreyfusthe Boston and Vaneck 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 Dreyfusthe Boston with a short position of Vaneck Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfusthe Boston and Vaneck Emerging.

Diversification Opportunities for Dreyfusthe Boston and Vaneck Emerging

-0.55
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Dreyfusthe and Vaneck is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusthe Boston Pany and Vaneck Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaneck Emerging Markets and Dreyfusthe Boston 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 Dreyfusthe Boston Pany are associated (or correlated) with Vaneck Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaneck Emerging Markets has no effect on the direction of Dreyfusthe Boston i.e., Dreyfusthe Boston and Vaneck Emerging go up and down completely randomly.

Pair Corralation between Dreyfusthe Boston and Vaneck Emerging

Assuming the 90 days horizon Dreyfusthe Boston Pany is expected to generate 1.3 times more return on investment than Vaneck Emerging. However, Dreyfusthe Boston is 1.3 times more volatile than Vaneck Emerging Markets. It trades about 0.22 of its potential returns per unit of risk. Vaneck Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest  2,718  in Dreyfusthe Boston Pany on October 20, 2024 and sell it today you would earn a total of  119.00  from holding Dreyfusthe Boston Pany or generate 4.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Dreyfusthe Boston Pany  vs.  Vaneck Emerging Markets

 Performance 
       Timeline  
Dreyfusthe Boston Pany 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Dreyfusthe Boston Pany are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Dreyfusthe Boston may actually be approaching a critical reversion point that can send shares even higher in February 2025.
Vaneck Emerging Markets 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Vaneck Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Dreyfusthe Boston and Vaneck Emerging Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dreyfusthe Boston and Vaneck Emerging

The main advantage of trading using opposite Dreyfusthe Boston and Vaneck Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfusthe Boston position performs unexpectedly, Vaneck 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 Vaneck Emerging will offset losses from the drop in Vaneck Emerging's long position.
The idea behind Dreyfusthe Boston Pany and Vaneck Emerging Markets pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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