Correlation Between Dreyfus/standish and Lkcm Equity
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Lkcm Equity 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 Lkcm Equity 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 Lkcm Equity Fund, you can compare the effects of market volatilities on Dreyfus/standish and Lkcm Equity 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 Lkcm Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Lkcm Equity.
Diversification Opportunities for Dreyfus/standish and Lkcm Equity
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dreyfus/standish and Lkcm is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Lkcm Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Equity Fund 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 Lkcm Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Equity Fund has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Lkcm Equity go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Lkcm Equity
Assuming the 90 days horizon Dreyfus/standish is expected to generate 5.99 times less return on investment than Lkcm Equity. But when comparing it to its historical volatility, Dreyfusstandish Global Fixed is 5.46 times less risky than Lkcm Equity. It trades about 0.17 of its potential returns per unit of risk. Lkcm Equity Fund is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 4,003 in Lkcm Equity Fund on August 30, 2024 and sell it today you would earn a total of 162.00 from holding Lkcm Equity Fund or generate 4.05% 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. Lkcm Equity Fund
Performance |
| Timeline |
| Dreyfusstandish Global |
| Lkcm Equity Fund |
Dreyfus/standish and Lkcm Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Lkcm Equity
The main advantage of trading using opposite Dreyfus/standish and Lkcm Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Lkcm Equity 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 Lkcm Equity will offset losses from the drop in Lkcm Equity's long position.| Dreyfus/standish vs. Dfa Five Year Global | Dreyfus/standish vs. HUMANA INC | Dreyfus/standish vs. Aquagold International | Dreyfus/standish vs. Barloworld Ltd ADR |
| Lkcm Equity vs. Dodge International Stock | Lkcm Equity vs. Dreyfusstandish Global Fixed | Lkcm Equity vs. Rbc Global Equity | Lkcm Equity vs. Ab Select Equity |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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