Correlation Between Dreyfus Floating and Nuveen Select
Can any of the company-specific risk be diversified away by investing in both Dreyfus Floating and Nuveen Select 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 Floating and Nuveen Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Floating Rate and Nuveen Select Maturities, you can compare the effects of market volatilities on Dreyfus Floating and Nuveen Select 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 Floating with a short position of Nuveen Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Floating and Nuveen Select.
Diversification Opportunities for Dreyfus Floating and Nuveen Select
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dreyfus and Nuveen is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Floating Rate and Nuveen Select Maturities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Select Maturities and Dreyfus Floating 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 Floating Rate are associated (or correlated) with Nuveen Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Select Maturities has no effect on the direction of Dreyfus Floating i.e., Dreyfus Floating and Nuveen Select go up and down completely randomly.
Pair Corralation between Dreyfus Floating and Nuveen Select
Assuming the 90 days horizon Dreyfus Floating Rate is expected to generate 0.18 times more return on investment than Nuveen Select. However, Dreyfus Floating Rate is 5.61 times less risky than Nuveen Select. It trades about 0.5 of its potential returns per unit of risk. Nuveen Select Maturities is currently generating about 0.06 per unit of risk. If you would invest 1,072 in Dreyfus Floating Rate on August 26, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Floating Rate vs. Nuveen Select Maturities
Performance |
| Timeline |
| Dreyfus Floating Rate |
| Nuveen Select Maturities |
Dreyfus Floating and Nuveen Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Floating and Nuveen Select
The main advantage of trading using opposite Dreyfus Floating and Nuveen Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Floating position performs unexpectedly, Nuveen Select 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 Nuveen Select will offset losses from the drop in Nuveen Select's long position.| Dreyfus Floating vs. Dreyfusstandish Global Fixed | Dreyfus Floating vs. Dreyfusstandish Global Fixed | Dreyfus Floating vs. Dreyfus High Yield | Dreyfus Floating vs. Dreyfus High Yield |
| Nuveen Select vs. GCM Grosvenor | Nuveen Select vs. Invesco Municipal Opportunity | Nuveen Select vs. Blackrock Municipal Target | Nuveen Select vs. Cohen Steers Qualityome |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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