Correlation Between Dreyfus/standish and Payden High
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Payden High 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 Payden High 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 Payden High Income, you can compare the effects of market volatilities on Dreyfus/standish and Payden High 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 Payden High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Payden High.
Diversification Opportunities for Dreyfus/standish and Payden High
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dreyfus/standish and Payden is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Payden High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden High 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 Payden High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden High Income has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Payden High go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Payden High
Assuming the 90 days horizon Dreyfusstandish Global Fixed is expected to under-perform the Payden High. In addition to that, Dreyfus/standish is 1.05 times more volatile than Payden High Income. It trades about -0.07 of its total potential returns per unit of risk. Payden High Income is currently generating about 0.12 per unit of volatility. If you would invest 634.00 in Payden High Income on October 26, 2024 and sell it today you would earn a total of 6.00 from holding Payden High Income or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Payden High Income
Performance |
| Timeline |
| Dreyfusstandish Global |
| Payden High Income |
Dreyfus/standish and Payden High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Payden High
The main advantage of trading using opposite Dreyfus/standish and Payden High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Payden High 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 Payden High will offset losses from the drop in Payden High's long position.| Dreyfus/standish vs. Ambrus Core Bond | Dreyfus/standish vs. Intermediate Term Tax Free Bond | Dreyfus/standish vs. Gmo High Yield | Dreyfus/standish vs. Ab Bond Inflation |
| Payden High vs. Dreyfusstandish Global Fixed | Payden High vs. Artisan High Income | Payden High vs. Ab Bond Inflation | Payden High vs. T Rowe Price |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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