Correlation Between Dreyfus Active and Dreyfus Municipal
Can any of the company-specific risk be diversified away by investing in both Dreyfus Active and Dreyfus Municipal 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 Dreyfus Municipal 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 Dreyfus Municipal Bond, you can compare the effects of market volatilities on Dreyfus Active and Dreyfus Municipal 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 Dreyfus Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Active and Dreyfus Municipal.
Diversification Opportunities for Dreyfus Active and Dreyfus Municipal
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dreyfus and Dreyfus is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Active Midcap and Dreyfus Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Municipal Bond 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 Dreyfus Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Municipal Bond has no effect on the direction of Dreyfus Active i.e., Dreyfus Active and Dreyfus Municipal go up and down completely randomly.
Pair Corralation between Dreyfus Active and Dreyfus Municipal
If you would invest 5,858 in Dreyfus Active Midcap on September 1, 2024 and sell it today you would earn a total of 985.00 from holding Dreyfus Active Midcap or generate 16.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Dreyfus Active Midcap vs. Dreyfus Municipal Bond
Performance |
| Timeline |
| Dreyfus Active Midcap |
| Dreyfus Municipal Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dreyfus Active and Dreyfus Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Active and Dreyfus Municipal
The main advantage of trading using opposite Dreyfus Active and Dreyfus Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Active position performs unexpectedly, Dreyfus Municipal 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 Municipal will offset losses from the drop in Dreyfus Municipal's long position.| Dreyfus Active vs. Franklin Lifesmart Retirement | Dreyfus Active vs. Moderately Aggressive Balanced | Dreyfus Active vs. Franklin Lifesmart Retirement | Dreyfus Active vs. Multimanager Lifestyle Moderate |
| Dreyfus Municipal vs. Dreyfus Intermediate Municipal | Dreyfus Municipal vs. Dreyfus Gnma Fund | Dreyfus Municipal vs. Fidelity Municipal Income | Dreyfus Municipal vs. T Rowe Price |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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