Correlation Between Dreyfus/standish and Federated Floating
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Federated Floating 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 Federated Floating 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 Federated Floating Rate, you can compare the effects of market volatilities on Dreyfus/standish and Federated Floating 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 Federated Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Federated Floating.
Diversification Opportunities for Dreyfus/standish and Federated Floating
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dreyfus/standish and Federated is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Federated Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Floating Rate 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 Federated Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Floating Rate has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Federated Floating go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Federated Floating
Assuming the 90 days horizon Dreyfus/standish is expected to generate 1.66 times less return on investment than Federated Floating. In addition to that, Dreyfus/standish is 1.71 times more volatile than Federated Floating Rate. It trades about 0.07 of its total potential returns per unit of risk. Federated Floating Rate is currently generating about 0.2 per unit of volatility. If you would invest 747.00 in Federated Floating Rate on September 4, 2024 and sell it today you would earn a total of 122.00 from holding Federated Floating Rate or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Federated Floating Rate
Performance |
| Timeline |
| Dreyfusstandish Global |
| Federated Floating Rate |
Dreyfus/standish and Federated Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Federated Floating
The main advantage of trading using opposite Dreyfus/standish and Federated Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Federated Floating 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 Federated Floating will offset losses from the drop in Federated Floating'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 |
| Federated Floating vs. Vanguard Windsor Fund | Federated Floating vs. Avantis Large Cap | Federated Floating vs. Fundamental Large Cap | Federated Floating vs. Transamerica Large Cap |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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