Correlation Between Dreyfus Amt and Dreyfus Floating
Can any of the company-specific risk be diversified away by investing in both Dreyfus Amt and Dreyfus Floating 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 Amt and Dreyfus Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Amt Free Municipal and Dreyfus Floating Rate, you can compare the effects of market volatilities on Dreyfus Amt and Dreyfus Floating 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 Amt with a short position of Dreyfus Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Amt and Dreyfus Floating.
Diversification Opportunities for Dreyfus Amt and Dreyfus Floating
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dreyfus and Dreyfus is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Amt Free Municipal and Dreyfus Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Floating Rate and Dreyfus Amt 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 Amt Free Municipal are associated (or correlated) with Dreyfus Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Floating Rate has no effect on the direction of Dreyfus Amt i.e., Dreyfus Amt and Dreyfus Floating go up and down completely randomly.
Pair Corralation between Dreyfus Amt and Dreyfus Floating
Assuming the 90 days horizon Dreyfus Amt Free Municipal is expected to generate 3.18 times more return on investment than Dreyfus Floating. However, Dreyfus Amt is 3.18 times more volatile than Dreyfus Floating Rate. It trades about 0.2 of its potential returns per unit of risk. Dreyfus Floating Rate is currently generating about 0.51 per unit of risk. If you would invest 1,336 in Dreyfus Amt Free Municipal on September 1, 2024 and sell it today you would earn a total of 18.00 from holding Dreyfus Amt Free Municipal or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Amt Free Municipal vs. Dreyfus Floating Rate
Performance |
| Timeline |
| Dreyfus Amt Free |
| Dreyfus Floating Rate |
Dreyfus Amt and Dreyfus Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Amt and Dreyfus Floating
The main advantage of trading using opposite Dreyfus Amt and Dreyfus Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Amt position performs unexpectedly, Dreyfus Floating 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 Floating will offset losses from the drop in Dreyfus Floating's long position.| Dreyfus Amt vs. T Rowe Price | Dreyfus Amt vs. Principal Lifetime Hybrid | Dreyfus Amt vs. T Rowe Price | Dreyfus Amt vs. T Rowe Price |
| Dreyfus Floating vs. Dreyfusstandish Global Fixed | Dreyfus Floating vs. Dreyfusstandish Global Fixed | Dreyfus Floating vs. Dreyfus High Yield | Dreyfus Floating vs. Dreyfus High Yield |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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