Correlation Between Eic Value and Dreyfus Government
Can any of the company-specific risk be diversified away by investing in both Eic Value and Dreyfus Government 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 Eic Value and Dreyfus Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Dreyfus Government Cash, you can compare the effects of market volatilities on Eic Value and Dreyfus Government 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 Eic Value with a short position of Dreyfus Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Dreyfus Government.
Diversification Opportunities for Eic Value and Dreyfus Government
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eic and Dreyfus is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Dreyfus Government Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Government Cash and Eic Value 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 Eic Value Fund are associated (or correlated) with Dreyfus Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Government Cash has no effect on the direction of Eic Value i.e., Eic Value and Dreyfus Government go up and down completely randomly.
Pair Corralation between Eic Value and Dreyfus Government
If you would invest 1,870 in Eic Value Fund on August 28, 2024 and sell it today you would earn a total of 51.00 from holding Eic Value Fund or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Dreyfus Government Cash
Performance |
| Timeline |
| Eic Value Fund |
| Dreyfus Government Cash |
Eic Value and Dreyfus Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Dreyfus Government
The main advantage of trading using opposite Eic Value and Dreyfus Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Dreyfus Government 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 Government will offset losses from the drop in Dreyfus Government's long position.| Eic Value vs. Archer Balanced Fund | Eic Value vs. Balanced Fund Investor | Eic Value vs. Ab Value Fund | Eic Value vs. Volumetric Fund Volumetric |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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