Correlation Between Dreyfus/standish and Aqr Global
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Aqr 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 Dreyfus/standish and Aqr Global 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 Aqr Global Macro, you can compare the effects of market volatilities on Dreyfus/standish and Aqr 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 Dreyfus/standish with a short position of Aqr Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Aqr Global.
Diversification Opportunities for Dreyfus/standish and Aqr Global
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dreyfus/standish and Aqr is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Aqr Global Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Global Macro 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 Aqr Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Global Macro has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Aqr Global go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Aqr Global
Assuming the 90 days horizon Dreyfusstandish Global Fixed is expected to generate 0.42 times more return on investment than Aqr Global. However, Dreyfusstandish Global Fixed is 2.38 times less risky than Aqr Global. It trades about 0.1 of its potential returns per unit of risk. Aqr Global Macro is currently generating about 0.01 per unit of risk. If you would invest 1,915 in Dreyfusstandish Global Fixed on November 3, 2024 and sell it today you would earn a total of 107.00 from holding Dreyfusstandish Global Fixed or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Aqr Global Macro
Performance |
| Timeline |
| Dreyfusstandish Global |
| Aqr Global Macro |
Dreyfus/standish and Aqr Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Aqr Global
The main advantage of trading using opposite Dreyfus/standish and Aqr Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Aqr 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 Aqr Global will offset losses from the drop in Aqr Global's long position.| Dreyfus/standish vs. Angel Oak Financial | Dreyfus/standish vs. Touchstone Ultra Short | Dreyfus/standish vs. Ab Bond Inflation | Dreyfus/standish vs. Artisan High Income |
| Aqr Global vs. Western Assets Emerging | Aqr Global vs. Angel Oak Multi Strategy | Aqr Global vs. Nasdaq 100 2x Strategy | Aqr Global vs. Doubleline Emerging Markets |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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