Correlation Between Dreyfus/standish and Aam Select
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Aam 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/standish and Aam Select 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 Aam Select Income, you can compare the effects of market volatilities on Dreyfus/standish and Aam 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/standish with a short position of Aam Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Aam Select.
Diversification Opportunities for Dreyfus/standish and Aam Select
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dreyfus/standish and Aam is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Aam Select Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aam Select Income and Dreyfus/standish 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 Aam Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aam Select Income has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Aam Select go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Aam Select
Assuming the 90 days horizon Dreyfusstandish Global Fixed is expected to generate 0.45 times more return on investment than Aam Select. However, Dreyfusstandish Global Fixed is 2.21 times less risky than Aam Select. It trades about 0.4 of its potential returns per unit of risk. Aam Select Income is currently generating about 0.12 per unit of risk. If you would invest 1,956 in Dreyfusstandish Global Fixed on September 4, 2024 and sell it today you would earn a total of 28.00 from holding Dreyfusstandish Global Fixed or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Aam Select Income
Performance |
| Timeline |
| Dreyfusstandish Global |
| Aam Select Income |
Dreyfus/standish and Aam Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Aam Select
The main advantage of trading using opposite Dreyfus/standish and Aam Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Aam 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 Aam Select will offset losses from the drop in Aam Select's long position.| Dreyfus/standish vs. Dreyfusstandish Global Fixed | Dreyfus/standish vs. Dreyfus High Yield | Dreyfus/standish vs. Dreyfus High Yield | Dreyfus/standish vs. Dreyfus High Yield |
| Aam Select vs. Dreyfusstandish Global Fixed | Aam Select vs. Ab Impact Municipal | Aam Select vs. T Rowe Price | Aam Select vs. Multisector Bond Sma |
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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