Correlation Between Dreyfus/standish and Mainstay Winslow
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Mainstay Winslow 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 Mainstay Winslow 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 Mainstay Winslow Large, you can compare the effects of market volatilities on Dreyfus/standish and Mainstay Winslow 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 Mainstay Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Mainstay Winslow.
Diversification Opportunities for Dreyfus/standish and Mainstay Winslow
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dreyfus/standish and Mainstay is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Mainstay Winslow Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Winslow Large 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 Mainstay Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Winslow Large has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Mainstay Winslow go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Mainstay Winslow
Assuming the 90 days horizon Dreyfus/standish is expected to generate 2.55 times less return on investment than Mainstay Winslow. But when comparing it to its historical volatility, Dreyfusstandish Global Fixed is 5.18 times less risky than Mainstay Winslow. It trades about 0.17 of its potential returns per unit of risk. Mainstay Winslow Large is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 844.00 in Mainstay Winslow Large on September 1, 2024 and sell it today you would earn a total of 261.00 from holding Mainstay Winslow Large or generate 30.92% 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. Mainstay Winslow Large
Performance |
| Timeline |
| Dreyfusstandish Global |
| Mainstay Winslow Large |
Dreyfus/standish and Mainstay Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Mainstay Winslow
The main advantage of trading using opposite Dreyfus/standish and Mainstay Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Mainstay Winslow 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 Mainstay Winslow will offset losses from the drop in Mainstay Winslow's long position.| Dreyfus/standish vs. Gamco Global Telecommunications | Dreyfus/standish vs. Nuveen Arizona Municipal | Dreyfus/standish vs. Ishares Municipal Bond | Dreyfus/standish vs. Blrc Sgy Mnp |
| Mainstay Winslow vs. Mainstay High Yield | Mainstay Winslow vs. Mainstay Tax Free | Mainstay Winslow vs. Mainstay Income Builder | Mainstay Winslow vs. Mainstay Large 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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