Correlation Between Fxybjx and Dreyfus Strategic
Can any of the company-specific risk be diversified away by investing in both Fxybjx and Dreyfus Strategic 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 Fxybjx and Dreyfus Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fxybjx and Dreyfus Strategic Municipal, you can compare the effects of market volatilities on Fxybjx and Dreyfus Strategic 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 Fxybjx with a short position of Dreyfus Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fxybjx and Dreyfus Strategic.
Diversification Opportunities for Fxybjx and Dreyfus Strategic
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fxybjx and Dreyfus is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fxybjx and Dreyfus Strategic Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Strategic and Fxybjx 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 Fxybjx are associated (or correlated) with Dreyfus Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Strategic has no effect on the direction of Fxybjx i.e., Fxybjx and Dreyfus Strategic go up and down completely randomly.
Pair Corralation between Fxybjx and Dreyfus Strategic
Assuming the 90 days trading horizon Fxybjx is expected to generate 1.12 times more return on investment than Dreyfus Strategic. However, Fxybjx is 1.12 times more volatile than Dreyfus Strategic Municipal. It trades about 0.14 of its potential returns per unit of risk. Dreyfus Strategic Municipal is currently generating about -0.07 per unit of risk. If you would invest 1,047 in Fxybjx on November 3, 2024 and sell it today you would earn a total of 15.00 from holding Fxybjx or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Fxybjx vs. Dreyfus Strategic Municipal
Performance |
| Timeline |
| Fxybjx |
| Dreyfus Strategic |
Fxybjx and Dreyfus Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fxybjx and Dreyfus Strategic
The main advantage of trading using opposite Fxybjx and Dreyfus Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fxybjx position performs unexpectedly, Dreyfus Strategic 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 Strategic will offset losses from the drop in Dreyfus Strategic's long position.| Fxybjx vs. Mesirow Financial Small | Fxybjx vs. Davis Financial Fund | Fxybjx vs. Icon Financial Fund | Fxybjx vs. Blackrock Financial Institutions |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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