Correlation Between Dreyfus High and Dreyfus New
Can any of the company-specific risk be diversified away by investing in both Dreyfus High and Dreyfus New 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 Dreyfus New 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 Dreyfus New York, you can compare the effects of market volatilities on Dreyfus High and Dreyfus New 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 Dreyfus New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus High and Dreyfus New.
Diversification Opportunities for Dreyfus High and Dreyfus New
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dreyfus and Dreyfus is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus High Yield and Dreyfus New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus New York 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 Dreyfus New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus New York has no effect on the direction of Dreyfus High i.e., Dreyfus High and Dreyfus New go up and down completely randomly.
Pair Corralation between Dreyfus High and Dreyfus New
Assuming the 90 days horizon Dreyfus High Yield is expected to generate 1.49 times more return on investment than Dreyfus New. However, Dreyfus High is 1.49 times more volatile than Dreyfus New York. It trades about 0.18 of its potential returns per unit of risk. Dreyfus New York is currently generating about 0.19 per unit of risk. If you would invest 1,100 in Dreyfus High Yield on September 2, 2024 and sell it today you would earn a total of 19.00 from holding Dreyfus High Yield or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus High Yield vs. Dreyfus New York
Performance |
| Timeline |
| Dreyfus High Yield |
| Dreyfus New York |
Dreyfus High and Dreyfus New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus High and Dreyfus New
The main advantage of trading using opposite Dreyfus High and Dreyfus New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus High position performs unexpectedly, Dreyfus New 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 Dreyfus New will offset losses from the drop in Dreyfus New's long position.| Dreyfus High vs. Vanguard Small Cap Growth | Dreyfus High vs. Growth Opportunities Fund | Dreyfus High vs. Issachar Fund Class | Dreyfus High vs. Ab Value Fund |
| Dreyfus New vs. Dreyfus High Yield | Dreyfus New vs. Dreyfusthe Boston Pany | Dreyfus New vs. Dreyfus International Bond | Dreyfus New vs. Dreyfus International Bond |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |