Correlation Between Dreyfus International and Barings Global
Can any of the company-specific risk be diversified away by investing in both Dreyfus International and Barings Global 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 International and Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus International Bond and Barings Global Floating, you can compare the effects of market volatilities on Dreyfus International and Barings Global 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 International with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus International and Barings Global.
Diversification Opportunities for Dreyfus International and Barings Global
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dreyfus and Barings is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus International Bond and Barings Global Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Floating and Dreyfus International 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 International Bond are associated (or correlated) with Barings Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Global Floating has no effect on the direction of Dreyfus International i.e., Dreyfus International and Barings Global go up and down completely randomly.
Pair Corralation between Dreyfus International and Barings Global
Assuming the 90 days horizon Dreyfus International Bond is expected to under-perform the Barings Global. In addition to that, Dreyfus International is 4.62 times more volatile than Barings Global Floating. It trades about -0.04 of its total potential returns per unit of risk. Barings Global Floating is currently generating about 0.34 per unit of volatility. If you would invest 871.00 in Barings Global Floating on August 30, 2024 and sell it today you would earn a total of 7.00 from holding Barings Global Floating or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus International Bond vs. Barings Global Floating
Performance |
| Timeline |
| Dreyfus International |
| Barings Global Floating |
Dreyfus International and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus International and Barings Global
The main advantage of trading using opposite Dreyfus International and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus International position performs unexpectedly, Barings Global 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 Barings Global will offset losses from the drop in Barings Global's long position.| Dreyfus International vs. Dreyfusstandish Global Fixed | Dreyfus International vs. Dreyfusstandish Global Fixed | Dreyfus International vs. Dreyfus High Yield | Dreyfus International vs. Dreyfus High Yield |
| Barings Global vs. Dimensional Retirement Income | Barings Global vs. Franklin Moderate Allocation | Barings Global vs. Fidelity Managed Retirement | Barings Global vs. Wisdomtree Siegel Moderate |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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