Correlation Between Dreyfus/standish and Salient Alternative
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Salient Alternative 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 Salient Alternative 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 Salient Alternative Beta, you can compare the effects of market volatilities on Dreyfus/standish and Salient Alternative 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 Salient Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Salient Alternative.
Diversification Opportunities for Dreyfus/standish and Salient Alternative
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dreyfus/standish and Salient is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Salient Alternative Beta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Alternative Beta 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 Salient Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Alternative Beta has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Salient Alternative go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Salient Alternative
Assuming the 90 days horizon Dreyfus/standish is expected to generate 3.05 times less return on investment than Salient Alternative. But when comparing it to its historical volatility, Dreyfusstandish Global Fixed is 2.66 times less risky than Salient Alternative. It trades about 0.09 of its potential returns per unit of risk. Salient Alternative Beta is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,080 in Salient Alternative Beta on August 29, 2024 and sell it today you would earn a total of 151.00 from holding Salient Alternative Beta or generate 13.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Salient Alternative Beta
Performance |
| Timeline |
| Dreyfusstandish Global |
| Salient Alternative Beta |
Dreyfus/standish and Salient Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Salient Alternative
The main advantage of trading using opposite Dreyfus/standish and Salient Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Salient Alternative 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 Salient Alternative will offset losses from the drop in Salient Alternative's long position.| Dreyfus/standish vs. Vanguard Total International | Dreyfus/standish vs. Dfa Five Year Global | Dreyfus/standish vs. HUMANA INC | Dreyfus/standish vs. Aquagold International |
| Salient Alternative vs. Gabelli Gold Fund | Salient Alternative vs. Precious Metals And | Salient Alternative vs. Gamco Global Gold | Salient Alternative vs. Great West Goldman Sachs |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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