Correlation Between Dreyfus Municipal and Dreyfus International
Can any of the company-specific risk be diversified away by investing in both Dreyfus Municipal and Dreyfus International 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 Municipal and Dreyfus International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Municipal Bond and Dreyfus International Stock, you can compare the effects of market volatilities on Dreyfus Municipal and Dreyfus International 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 Municipal with a short position of Dreyfus International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Municipal and Dreyfus International.
Diversification Opportunities for Dreyfus Municipal and Dreyfus International
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dreyfus and Dreyfus is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Municipal Bond and Dreyfus International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus International and Dreyfus Municipal 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 Municipal Bond are associated (or correlated) with Dreyfus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus International has no effect on the direction of Dreyfus Municipal i.e., Dreyfus Municipal and Dreyfus International go up and down completely randomly.
Pair Corralation between Dreyfus Municipal and Dreyfus International
If you would invest 1,074 in Dreyfus Municipal Bond on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Dreyfus Municipal Bond or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Dreyfus Municipal Bond vs. Dreyfus International Stock
Performance |
| Timeline |
| Dreyfus Municipal Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dreyfus International |
Dreyfus Municipal and Dreyfus International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Municipal and Dreyfus International
The main advantage of trading using opposite Dreyfus Municipal and Dreyfus International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Municipal position performs unexpectedly, Dreyfus International 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 International will offset losses from the drop in Dreyfus International's long position.| Dreyfus Municipal vs. Dreyfus Intermediate Municipal | Dreyfus Municipal vs. Dreyfus Gnma Fund | Dreyfus Municipal vs. Fidelity Municipal Income | Dreyfus Municipal vs. T Rowe Price |
| Dreyfus International vs. Dreyfus Smallcap Stock | Dreyfus International vs. Dreyfus Midcap Index | Dreyfus International vs. Dreyfus Bond Market | Dreyfus International vs. Dreyfus Sp 500 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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