Correlation Between Dreyfus Government and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Dreyfus Government and Mainstay Growth 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 Government and Mainstay Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Government Cash and Mainstay Growth Etf, you can compare the effects of market volatilities on Dreyfus Government and Mainstay Growth 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 Government with a short position of Mainstay Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Government and Mainstay Growth.
Diversification Opportunities for Dreyfus Government and Mainstay Growth
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dreyfus and Mainstay is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Government Cash and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf and Dreyfus Government 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 Government Cash are associated (or correlated) with Mainstay Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Dreyfus Government i.e., Dreyfus Government and Mainstay Growth go up and down completely randomly.
Pair Corralation between Dreyfus Government and Mainstay Growth
Assuming the 90 days horizon Dreyfus Government is expected to generate 2.02 times less return on investment than Mainstay Growth. In addition to that, Dreyfus Government is 1.99 times more volatile than Mainstay Growth Etf. It trades about 0.02 of its total potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.08 per unit of volatility. If you would invest 1,140 in Mainstay Growth Etf on September 2, 2024 and sell it today you would earn a total of 355.00 from holding Mainstay Growth Etf or generate 31.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.83% |
| Values | Daily Returns |
Dreyfus Government Cash vs. Mainstay Growth Etf
Performance |
| Timeline |
| Dreyfus Government Cash |
| Mainstay Growth Etf |
Dreyfus Government and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Government and Mainstay Growth
The main advantage of trading using opposite Dreyfus Government and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Government position performs unexpectedly, Mainstay Growth 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 Mainstay Growth will offset losses from the drop in Mainstay Growth's long position.| Dreyfus Government vs. Balanced Fund Investor | Dreyfus Government vs. Aam Select Income | Dreyfus Government vs. Fabxx | Dreyfus Government vs. Falcon Focus Scv |
| Mainstay Growth vs. Mainstay High Yield | Mainstay Growth vs. Mainstay Tax Free | Mainstay Growth vs. Mainstay Income Builder | Mainstay Growth vs. Mainstay Large Cap |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |