Correlation Between Dreyfus High and Baird Strategic
Can any of the company-specific risk be diversified away by investing in both Dreyfus High and Baird Strategic 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 Baird Strategic 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 Baird Strategic Municipal, you can compare the effects of market volatilities on Dreyfus High and Baird Strategic 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 Baird Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus High and Baird Strategic.
Diversification Opportunities for Dreyfus High and Baird Strategic
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dreyfus and Baird is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus High Yield and Baird Strategic Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Strategic Municipal 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 Baird Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Strategic Municipal has no effect on the direction of Dreyfus High i.e., Dreyfus High and Baird Strategic go up and down completely randomly.
Pair Corralation between Dreyfus High and Baird Strategic
Assuming the 90 days horizon Dreyfus High Yield is expected to generate 2.22 times more return on investment than Baird Strategic. However, Dreyfus High is 2.22 times more volatile than Baird Strategic Municipal. It trades about 0.14 of its potential returns per unit of risk. Baird Strategic Municipal is currently generating about 0.19 per unit of risk. If you would invest 1,100 in Dreyfus High Yield on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Dreyfus High Yield or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dreyfus High Yield vs. Baird Strategic Municipal
Performance |
| Timeline |
| Dreyfus High Yield |
| Baird Strategic Municipal |
Dreyfus High and Baird Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus High and Baird Strategic
The main advantage of trading using opposite Dreyfus High and Baird Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus High position performs unexpectedly, Baird Strategic 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 Baird Strategic will offset losses from the drop in Baird Strategic's long position.| Dreyfus High vs. Dreyfusstandish Global Fixed | Dreyfus High vs. Dreyfusstandish Global Fixed | Dreyfus High vs. Dreyfus High Yield | Dreyfus High vs. Dreyfus High Yield |
| Baird Strategic vs. Forum Real Estate | Baird Strategic vs. Pender Real Estate | Baird Strategic vs. Prudential Real Estate | Baird Strategic vs. Simt Real Estate |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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