Correlation Between Dreyfus/standish and State Street
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and State Street 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 State Street 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 State Street Aggregate, you can compare the effects of market volatilities on Dreyfus/standish and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and State Street.
Diversification Opportunities for Dreyfus/standish and State Street
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dreyfus/standish and State is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and State Street Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Aggregate 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Aggregate has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and State Street go up and down completely randomly.
Pair Corralation between Dreyfus/standish and State Street
Assuming the 90 days horizon Dreyfusstandish Global Fixed is expected to generate 0.48 times more return on investment than State Street. However, Dreyfusstandish Global Fixed is 2.1 times less risky than State Street. It trades about 0.4 of its potential returns per unit of risk. State Street Aggregate is currently generating about 0.13 per unit of risk. If you would invest 2,054 in Dreyfusstandish Global Fixed on September 1, 2024 and sell it today you would earn a total of 32.00 from holding Dreyfusstandish Global Fixed or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. State Street Aggregate
Performance |
| Timeline |
| Dreyfusstandish Global |
| State Street Aggregate |
Dreyfus/standish and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and State Street
The main advantage of trading using opposite Dreyfus/standish and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street'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 |
| State Street vs. T Rowe Price | State Street vs. Strategic Allocation Aggressive | State Street vs. Enhanced Large Pany | State Street vs. T Rowe Price |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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