Correlation Between Dreyfus Opportunistic and Dreyfus Sustainable
Can any of the company-specific risk be diversified away by investing in both Dreyfus Opportunistic and Dreyfus Sustainable 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 Opportunistic and Dreyfus Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Opportunistic Midcap and The Dreyfus Sustainable, you can compare the effects of market volatilities on Dreyfus Opportunistic and Dreyfus Sustainable 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 Opportunistic with a short position of Dreyfus Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Opportunistic and Dreyfus Sustainable.
Diversification Opportunities for Dreyfus Opportunistic and Dreyfus Sustainable
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dreyfus and Dreyfus is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Opportunistic Midcap and The Dreyfus Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Dreyfus Sustainable and Dreyfus Opportunistic 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 Opportunistic Midcap are associated (or correlated) with Dreyfus Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Dreyfus Sustainable has no effect on the direction of Dreyfus Opportunistic i.e., Dreyfus Opportunistic and Dreyfus Sustainable go up and down completely randomly.
Pair Corralation between Dreyfus Opportunistic and Dreyfus Sustainable
Assuming the 90 days horizon Dreyfus Opportunistic Midcap is expected to generate 0.92 times more return on investment than Dreyfus Sustainable. However, Dreyfus Opportunistic Midcap is 1.08 times less risky than Dreyfus Sustainable. It trades about 0.11 of its potential returns per unit of risk. The Dreyfus Sustainable is currently generating about 0.1 per unit of risk. If you would invest 3,170 in Dreyfus Opportunistic Midcap on August 28, 2024 and sell it today you would earn a total of 401.00 from holding Dreyfus Opportunistic Midcap or generate 12.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Opportunistic Midcap vs. The Dreyfus Sustainable
Performance |
| Timeline |
| Dreyfus Opportunistic |
| The Dreyfus Sustainable |
Dreyfus Opportunistic and Dreyfus Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Opportunistic and Dreyfus Sustainable
The main advantage of trading using opposite Dreyfus Opportunistic and Dreyfus Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Opportunistic position performs unexpectedly, Dreyfus Sustainable 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 Sustainable will offset losses from the drop in Dreyfus Sustainable's long position.The idea behind Dreyfus Opportunistic Midcap and The Dreyfus Sustainable pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Dreyfus Sustainable vs. Dreyfus High Yield | Dreyfus Sustainable vs. Dreyfusthe Boston Pany | Dreyfus Sustainable vs. Dreyfus International Bond | Dreyfus Sustainable 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |