Correlation Between Federated Equity and Dreyfus/standish
Can any of the company-specific risk be diversified away by investing in both Federated Equity and Dreyfus/standish 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 Federated Equity and Dreyfus/standish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Equity Income and Dreyfusstandish Global Fixed, you can compare the effects of market volatilities on Federated Equity and Dreyfus/standish 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 Federated Equity with a short position of Dreyfus/standish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Equity and Dreyfus/standish.
Diversification Opportunities for Federated Equity and Dreyfus/standish
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federated and Dreyfus/standish is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Federated Equity Income and Dreyfusstandish Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusstandish Global and Federated Equity 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 Federated Equity Income are associated (or correlated) with Dreyfus/standish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfusstandish Global has no effect on the direction of Federated Equity i.e., Federated Equity and Dreyfus/standish go up and down completely randomly.
Pair Corralation between Federated Equity and Dreyfus/standish
Assuming the 90 days horizon Federated Equity Income is expected to generate 4.8 times more return on investment than Dreyfus/standish. However, Federated Equity is 4.8 times more volatile than Dreyfusstandish Global Fixed. It trades about 0.19 of its potential returns per unit of risk. Dreyfusstandish Global Fixed is currently generating about 0.16 per unit of risk. If you would invest 2,566 in Federated Equity Income on August 29, 2024 and sell it today you would earn a total of 96.00 from holding Federated Equity Income or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Equity Income vs. Dreyfusstandish Global Fixed
Performance |
| Timeline |
| Federated Equity Income |
| Dreyfusstandish Global |
Federated Equity and Dreyfus/standish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Equity and Dreyfus/standish
The main advantage of trading using opposite Federated Equity and Dreyfus/standish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Equity position performs unexpectedly, Dreyfus/standish 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/standish will offset losses from the drop in Dreyfus/standish's long position.| Federated Equity vs. Ambrus Core Bond | Federated Equity vs. T Rowe Price | Federated Equity vs. Touchstone Ohio Tax | Federated Equity vs. Rbc Bluebay Global |
| Dreyfus/standish vs. Vanguard Total International | Dreyfus/standish vs. Dfa Five Year Global | Dreyfus/standish vs. HUMANA INC | Dreyfus/standish vs. Aquagold International |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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