Correlation Between Dreyfus New and Aqr Global
Can any of the company-specific risk be diversified away by investing in both Dreyfus New and Aqr Global 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 New and Aqr Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus New York and Aqr Global Macro, you can compare the effects of market volatilities on Dreyfus New and Aqr Global 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 New with a short position of Aqr Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus New and Aqr Global.
Diversification Opportunities for Dreyfus New and Aqr Global
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dreyfus and Aqr is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus New York and Aqr Global Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Global Macro and Dreyfus New 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 New York are associated (or correlated) with Aqr Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Global Macro has no effect on the direction of Dreyfus New i.e., Dreyfus New and Aqr Global go up and down completely randomly.
Pair Corralation between Dreyfus New and Aqr Global
Assuming the 90 days horizon Dreyfus New York is expected to under-perform the Aqr Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dreyfus New York is 1.86 times less risky than Aqr Global. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Aqr Global Macro is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 969.00 in Aqr Global Macro on December 9, 2024 and sell it today you would earn a total of 36.00 from holding Aqr Global Macro or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus New York vs. Aqr Global Macro
Performance |
| Timeline |
| Dreyfus New York |
| Aqr Global Macro |
Dreyfus New and Aqr Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus New and Aqr Global
The main advantage of trading using opposite Dreyfus New and Aqr Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus New position performs unexpectedly, Aqr Global 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 Aqr Global will offset losses from the drop in Aqr Global's long position.| Dreyfus New vs. Oppenheimer Global Allocation | ||
| Dreyfus New vs. Principal Lifetime Hybrid | ||
| Dreyfus New vs. Washington Mutual Investors | ||
| Dreyfus New vs. Wasatch Large Cap |
| Aqr Global vs. Dreyfusstandish Global Fixed | ||
| Aqr Global vs. Morningstar Global Income | ||
| Aqr Global vs. Franklin Mutual Global | ||
| Aqr Global vs. Ab Global Real |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |