Correlation Between Dreyfus/standish and Dreyfus High
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Dreyfus High 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 Dreyfus/standish and Dreyfus High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfusstandish Global Fixed and Dreyfus High Yield, you can compare the effects of market volatilities on Dreyfus/standish and Dreyfus High 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 Dreyfus/standish with a short position of Dreyfus High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Dreyfus High.
Diversification Opportunities for Dreyfus/standish and Dreyfus High
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dreyfus/standish and Dreyfus is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Dreyfus High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus High Yield and Dreyfus/standish 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 Dreyfusstandish Global Fixed are associated (or correlated) with Dreyfus High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus High Yield has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Dreyfus High go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Dreyfus High
Assuming the 90 days horizon Dreyfus/standish is expected to generate 1.03 times less return on investment than Dreyfus High. But when comparing it to its historical volatility, Dreyfusstandish Global Fixed is 1.39 times less risky than Dreyfus High. It trades about 0.11 of its potential returns per unit of risk. Dreyfus High Yield is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,003 in Dreyfus High Yield on August 31, 2024 and sell it today you would earn a total of 112.00 from holding Dreyfus High Yield or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Dreyfus High Yield
Performance |
| Timeline |
| Dreyfusstandish Global |
| Dreyfus High Yield |
Dreyfus/standish and Dreyfus High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Dreyfus High
The main advantage of trading using opposite Dreyfus/standish and Dreyfus High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Dreyfus High 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 High will offset losses from the drop in Dreyfus High's long position.| Dreyfus/standish vs. Virtus Seix Government | Dreyfus/standish vs. John Hancock Government | Dreyfus/standish vs. Goldman Sachs Government | Dreyfus/standish vs. Fidelity Series Government |
| Dreyfus High vs. Dreyfus Alcentra Global | Dreyfus High vs. Dreyfus Global Equity | Dreyfus High vs. Dreyfus High Yield | Dreyfus High vs. Dreyfus Municipal Bond |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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