Correlation Between Dreyfus Active and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Dreyfus Active and Angel Oak 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 Active and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Active Midcap and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Dreyfus Active and Angel Oak 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 Active with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Active and Angel Oak.
Diversification Opportunities for Dreyfus Active and Angel Oak
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dreyfus and Angel is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Active Midcap and Angel Oak Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Multi and Dreyfus Active 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 Active Midcap are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Multi has no effect on the direction of Dreyfus Active i.e., Dreyfus Active and Angel Oak go up and down completely randomly.
Pair Corralation between Dreyfus Active and Angel Oak
Assuming the 90 days horizon Dreyfus Active Midcap is expected to generate 4.94 times more return on investment than Angel Oak. However, Dreyfus Active is 4.94 times more volatile than Angel Oak Multi Strategy. It trades about 0.05 of its potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.1 per unit of risk. If you would invest 4,641 in Dreyfus Active Midcap on September 3, 2024 and sell it today you would earn a total of 1,218 from holding Dreyfus Active Midcap or generate 26.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Active Midcap vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Dreyfus Active Midcap |
| Angel Oak Multi |
Dreyfus Active and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Active and Angel Oak
The main advantage of trading using opposite Dreyfus Active and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Active position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Dreyfus Active vs. Principal Lifetime Hybrid | Dreyfus Active vs. T Rowe Price | Dreyfus Active vs. Rational Strategic Allocation | Dreyfus Active vs. Rbb Fund |
| Angel Oak vs. T Rowe Price | Angel Oak vs. T Rowe Price | Angel Oak vs. T Rowe Price | Angel Oak vs. Transamerica Asset Allocation |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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