Correlation Between Hennessy Focus and Dreyfusstandish Global
Can any of the company-specific risk be diversified away by investing in both Hennessy Focus and Dreyfusstandish 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 Hennessy Focus and Dreyfusstandish Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hennessy Focus Fund and Dreyfusstandish Global Fixed, you can compare the effects of market volatilities on Hennessy Focus and Dreyfusstandish 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 Hennessy Focus with a short position of Dreyfusstandish Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy Focus and Dreyfusstandish Global.
Diversification Opportunities for Hennessy Focus and Dreyfusstandish Global
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hennessy and Dreyfusstandish is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Focus Fund and Dreyfusstandish Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusstandish Global and Hennessy Focus 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 Hennessy Focus Fund are associated (or correlated) with Dreyfusstandish Global. 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 Hennessy Focus i.e., Hennessy Focus and Dreyfusstandish Global go up and down completely randomly.
Pair Corralation between Hennessy Focus and Dreyfusstandish Global
Assuming the 90 days horizon Hennessy Focus Fund is expected to under-perform the Dreyfusstandish Global. In addition to that, Hennessy Focus is 24.22 times more volatile than Dreyfusstandish Global Fixed. It trades about -0.19 of its total potential returns per unit of risk. Dreyfusstandish Global Fixed is currently generating about 0.62 per unit of volatility. If you would invest 1,957 in Dreyfusstandish Global Fixed on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Dreyfusstandish Global Fixed or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Focus Fund vs. Dreyfusstandish Global Fixed
Performance |
| Timeline |
| Hennessy Focus |
| Dreyfusstandish Global |
Hennessy Focus and Dreyfusstandish Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy Focus and Dreyfusstandish Global
The main advantage of trading using opposite Hennessy Focus and Dreyfusstandish Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy Focus position performs unexpectedly, Dreyfusstandish 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 Dreyfusstandish Global will offset losses from the drop in Dreyfusstandish Global's long position.| Hennessy Focus vs. Fulcrum Diversified Absolute | Hennessy Focus vs. Aqr Diversified Arbitrage | Hennessy Focus vs. Lord Abbett Diversified | Hennessy Focus vs. Global Diversified Income |
| Dreyfusstandish Global vs. Dreyfusstandish Global Fixed | Dreyfusstandish Global vs. Dreyfus High Yield | Dreyfusstandish Global vs. Dreyfus High Yield | Dreyfusstandish 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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