Correlation Between Dreyfus/standish and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Mainstay Moderate 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 Mainstay Moderate 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 Mainstay Moderate Growth, you can compare the effects of market volatilities on Dreyfus/standish and Mainstay Moderate 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 Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Mainstay Moderate.
Diversification Opportunities for Dreyfus/standish and Mainstay Moderate
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dreyfus/standish and Mainstay is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Mainstay Moderate Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate Growth 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 Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate Growth has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Mainstay Moderate
If you would invest 1,926 in Dreyfusstandish Global Fixed on January 5, 2025 and sell it today you would earn a total of 24.00 from holding Dreyfusstandish Global Fixed or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Mainstay Moderate Growth
Performance |
| Timeline |
| Dreyfusstandish Global |
| Mainstay Moderate Growth |
Risk-Adjusted Performance
Good
Weak | Strong |
Dreyfus/standish and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Mainstay Moderate
The main advantage of trading using opposite Dreyfus/standish and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Mainstay Moderate 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 Mainstay Moderate will offset losses from the drop in Mainstay Moderate'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 |
| Mainstay Moderate vs. Virtus Multi Sector Short | Mainstay Moderate vs. Siit Ultra Short | Mainstay Moderate vs. Dreyfus Short Intermediate | Mainstay Moderate vs. Cmg Ultra Short |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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