Correlation Between Dreyfus/standish and Baron Focused
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Baron Focused 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/standish and Baron Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfusstandish Global Fixed and Baron Focused Growth, you can compare the effects of market volatilities on Dreyfus/standish and Baron Focused 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/standish with a short position of Baron Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Baron Focused.
Diversification Opportunities for Dreyfus/standish and Baron Focused
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dreyfus/standish and Baron is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Baron Focused Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Focused Growth and Dreyfus/standish 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 Dreyfusstandish Global Fixed are associated (or correlated) with Baron Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Focused Growth has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Baron Focused go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Baron Focused
Assuming the 90 days horizon Dreyfus/standish is expected to generate 3.76 times less return on investment than Baron Focused. But when comparing it to its historical volatility, Dreyfusstandish Global Fixed is 3.7 times less risky than Baron Focused. It trades about 0.09 of its potential returns per unit of risk. Baron Focused Growth is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,235 in Baron Focused Growth on August 29, 2024 and sell it today you would earn a total of 1,329 from holding Baron Focused Growth or generate 41.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Baron Focused Growth
Performance |
| Timeline |
| Dreyfusstandish Global |
| Baron Focused Growth |
Dreyfus/standish and Baron Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Baron Focused
The main advantage of trading using opposite Dreyfus/standish and Baron Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Baron Focused 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 Baron Focused will offset losses from the drop in Baron Focused's long position.| Dreyfus/standish vs. Dreyfus High Yield | Dreyfus/standish vs. Dreyfus International Bond | Dreyfus/standish vs. Dreyfus International Bond | Dreyfus/standish vs. Dreyfus International Equity |
| Baron Focused vs. Baron Real Estate | Baron Focused vs. Baron Real Estate | Baron Focused vs. Baron Real Estate | Baron Focused vs. Baron Small Cap |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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