Correlation Between Dreyfus New and Dreyfus Global
Can any of the company-specific risk be diversified away by investing in both Dreyfus New and Dreyfus Global 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 New and Dreyfus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus New Jersey and Dreyfus Global Dynamic, you can compare the effects of market volatilities on Dreyfus New and Dreyfus Global 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 New with a short position of Dreyfus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus New and Dreyfus Global.
Diversification Opportunities for Dreyfus New and Dreyfus Global
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dreyfus and Dreyfus is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus New Jersey and Dreyfus Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Global Dynamic and Dreyfus New 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 Dreyfus New Jersey are associated (or correlated) with Dreyfus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Global Dynamic has no effect on the direction of Dreyfus New i.e., Dreyfus New and Dreyfus Global go up and down completely randomly.
Pair Corralation between Dreyfus New and Dreyfus Global
Assuming the 90 days horizon Dreyfus New is expected to generate 3.6 times less return on investment than Dreyfus Global. In addition to that, Dreyfus New is 1.92 times more volatile than Dreyfus Global Dynamic. It trades about 0.02 of its total potential returns per unit of risk. Dreyfus Global Dynamic is currently generating about 0.17 per unit of volatility. If you would invest 1,046 in Dreyfus Global Dynamic on November 1, 2024 and sell it today you would earn a total of 17.00 from holding Dreyfus Global Dynamic or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus New Jersey vs. Dreyfus Global Dynamic
Performance |
| Timeline |
| Dreyfus New Jersey |
| Dreyfus Global Dynamic |
Dreyfus New and Dreyfus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus New and Dreyfus Global
The main advantage of trading using opposite Dreyfus New and Dreyfus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus New position performs unexpectedly, Dreyfus Global 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 Dreyfus Global will offset losses from the drop in Dreyfus Global's long position.| Dreyfus New vs. Advent Claymore Convertible | Dreyfus New vs. Allianzgi Convertible Income | Dreyfus New vs. Absolute Convertible Arbitrage | Dreyfus New vs. Virtus Convertible |
| Dreyfus Global vs. Dreyfusstandish Global Fixed | Dreyfus Global vs. Dreyfusstandish Global Fixed | Dreyfus Global vs. Dreyfus High Yield | Dreyfus Global vs. Dreyfus High Yield |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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