Correlation Between New York and Dreyfus Intermediate
Can any of the company-specific risk be diversified away by investing in both New York and Dreyfus Intermediate 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 New York and Dreyfus Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New York Tax Free and Dreyfus Intermediate Municipal, you can compare the effects of market volatilities on New York and Dreyfus Intermediate 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 New York with a short position of Dreyfus Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and Dreyfus Intermediate.
Diversification Opportunities for New York and Dreyfus Intermediate
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Dreyfus is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding New York Tax Free and Dreyfus Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Intermediate and New York 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 New York Tax Free are associated (or correlated) with Dreyfus Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Intermediate has no effect on the direction of New York i.e., New York and Dreyfus Intermediate go up and down completely randomly.
Pair Corralation between New York and Dreyfus Intermediate
Assuming the 90 days horizon New York Tax Free is expected to generate 1.47 times more return on investment than Dreyfus Intermediate. However, New York is 1.47 times more volatile than Dreyfus Intermediate Municipal. It trades about 0.08 of its potential returns per unit of risk. Dreyfus Intermediate Municipal is currently generating about 0.07 per unit of risk. If you would invest 996.00 in New York Tax Free on September 1, 2024 and sell it today you would earn a total of 104.00 from holding New York Tax Free or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
New York Tax Free vs. Dreyfus Intermediate Municipal
Performance |
| Timeline |
| New York Tax |
| Dreyfus Intermediate |
New York and Dreyfus Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New York and Dreyfus Intermediate
The main advantage of trading using opposite New York and Dreyfus Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York position performs unexpectedly, Dreyfus Intermediate 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 Intermediate will offset losses from the drop in Dreyfus Intermediate's long position.| New York vs. New Jersey Tax Free | New York vs. T Rowe Price | New York vs. Virginia Tax Free Bond | New York vs. T Rowe Price |
| Dreyfus Intermediate vs. Dreyfus Short Intermediate | Dreyfus Intermediate vs. Dreyfus Gnma Fund | Dreyfus Intermediate vs. Fidelity Municipal Income | Dreyfus Intermediate 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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