Correlation Between Dreyfus High and Growth Fund
Can any of the company-specific risk be diversified away by investing in both Dreyfus High and Growth 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 Dreyfus High and Growth Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus High Yield and Growth Fund Of, you can compare the effects of market volatilities on Dreyfus High and Growth 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 Dreyfus High with a short position of Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus High and Growth Fund.
Diversification Opportunities for Dreyfus High and Growth Fund
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dreyfus and Growth is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus High Yield and Growth Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund and Dreyfus High 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 Dreyfus High Yield are associated (or correlated) with Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of Dreyfus High i.e., Dreyfus High and Growth Fund go up and down completely randomly.
Pair Corralation between Dreyfus High and Growth Fund
Assuming the 90 days horizon Dreyfus High is expected to generate 2.64 times less return on investment than Growth Fund. But when comparing it to its historical volatility, Dreyfus High Yield is 3.14 times less risky than Growth Fund. It trades about 0.11 of its potential returns per unit of risk. Growth Fund Of is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,410 in Growth Fund Of on September 3, 2024 and sell it today you would earn a total of 996.00 from holding Growth Fund Of or generate 15.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus High Yield vs. Growth Fund Of
Performance |
| Timeline |
| Dreyfus High Yield |
| Growth Fund |
Dreyfus High and Growth Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus High and Growth Fund
The main advantage of trading using opposite Dreyfus High and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus High position performs unexpectedly, Growth 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 Growth Fund will offset losses from the drop in Growth Fund's long position.| Dreyfus High vs. Needham Aggressive Growth | Dreyfus High vs. Calvert High Yield | Dreyfus High vs. Siit High Yield | Dreyfus High vs. Pioneer High Yield |
| Growth Fund vs. Europacific Growth Fund | Growth Fund vs. Capital World Growth | Growth Fund vs. Smallcap World Fund | Growth Fund vs. American Balanced Fund |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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