Correlation Between Dreyfusstandish Global and Arbitrage Fund
Can any of the company-specific risk be diversified away by investing in both Dreyfusstandish Global and Arbitrage Fund 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 Dreyfusstandish Global and Arbitrage Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfusstandish Global Fixed and The Arbitrage Fund, you can compare the effects of market volatilities on Dreyfusstandish Global and Arbitrage Fund 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 Dreyfusstandish Global with a short position of Arbitrage Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfusstandish Global and Arbitrage Fund.
Diversification Opportunities for Dreyfusstandish Global and Arbitrage Fund
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dreyfusstandish and Arbitrage is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and The Arbitrage Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbitrage Fund and Dreyfusstandish Global 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 Dreyfusstandish Global Fixed are associated (or correlated) with Arbitrage Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbitrage Fund has no effect on the direction of Dreyfusstandish Global i.e., Dreyfusstandish Global and Arbitrage Fund go up and down completely randomly.
Pair Corralation between Dreyfusstandish Global and Arbitrage Fund
Assuming the 90 days horizon Dreyfusstandish Global Fixed is expected to generate 1.12 times more return on investment than Arbitrage Fund. However, Dreyfusstandish Global is 1.12 times more volatile than The Arbitrage Fund. It trades about 0.12 of its potential returns per unit of risk. The Arbitrage Fund is currently generating about 0.05 per unit of risk. If you would invest 1,792 in Dreyfusstandish Global Fixed on September 12, 2024 and sell it today you would earn a total of 199.00 from holding Dreyfusstandish Global Fixed or generate 11.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. The Arbitrage Fund
Performance |
| Timeline |
| Dreyfusstandish Global |
| Arbitrage Fund |
Dreyfusstandish Global and Arbitrage Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfusstandish Global and Arbitrage Fund
The main advantage of trading using opposite Dreyfusstandish Global and Arbitrage Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfusstandish Global position performs unexpectedly, Arbitrage Fund 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 Arbitrage Fund will offset losses from the drop in Arbitrage Fund's long position.| Dreyfusstandish Global vs. SCOR PK | Dreyfusstandish Global vs. Morningstar Unconstrained Allocation | Dreyfusstandish Global vs. Thrivent High Yield | Dreyfusstandish Global vs. Via Renewables |
| Arbitrage Fund vs. Ab Bond Inflation | Arbitrage Fund vs. Alliancebernstein National Municipal | Arbitrage Fund vs. Dreyfusstandish Global Fixed | Arbitrage Fund vs. Blrc Sgy Mnp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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