Correlation Between Mainstay Floating and Dreyfus Government
Can any of the company-specific risk be diversified away by investing in both Mainstay Floating 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 Mainstay Floating and Dreyfus Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Floating Rate and Dreyfus Government Cash, you can compare the effects of market volatilities on Mainstay Floating 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 Mainstay Floating with a short position of Dreyfus Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Floating and Dreyfus Government.
Diversification Opportunities for Mainstay Floating and Dreyfus Government
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Dreyfus is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Floating Rate 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 Mainstay Floating 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 Mainstay Floating Rate 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 Mainstay Floating i.e., Mainstay Floating and Dreyfus Government go up and down completely randomly.
Pair Corralation between Mainstay Floating and Dreyfus Government
Assuming the 90 days horizon Mainstay Floating Rate is expected to generate 0.12 times more return on investment than Dreyfus Government. However, Mainstay Floating Rate is 8.43 times less risky than Dreyfus Government. It trades about 0.22 of its potential returns per unit of risk. Dreyfus Government Cash is currently generating about 0.02 per unit of risk. If you would invest 742.00 in Mainstay Floating Rate on September 12, 2024 and sell it today you would earn a total of 149.00 from holding Mainstay Floating Rate or generate 20.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.82% |
| Values | Daily Returns |
Mainstay Floating Rate vs. Dreyfus Government Cash
Performance |
| Timeline |
| Mainstay Floating Rate |
| Dreyfus Government Cash |
Mainstay Floating and Dreyfus Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Floating and Dreyfus Government
The main advantage of trading using opposite Mainstay Floating and Dreyfus Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Floating 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.| Mainstay Floating vs. Dreyfus Government Cash | Mainstay Floating vs. Aig Government Money | Mainstay Floating vs. Ridgeworth Seix Government | Mainstay Floating vs. Prudential Government Income |
| Dreyfus Government vs. Vanguard Total Stock | Dreyfus Government vs. Vanguard 500 Index | Dreyfus Government vs. Vanguard Total Stock | Dreyfus Government vs. Vanguard Total Stock |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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