Correlation Between Dreyfus/the Boston and Dreyfus Global

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Dreyfus/the Boston and Dreyfus 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/the Boston and Dreyfus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfusthe Boston Pany and Dreyfus Global Dynamic, you can compare the effects of market volatilities on Dreyfus/the Boston and Dreyfus 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/the Boston with a short position of Dreyfus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/the Boston and Dreyfus Global.

Diversification Opportunities for Dreyfus/the Boston and Dreyfus Global

-0.27
  Correlation Coefficient

Very good diversification

The 3 months correlation between Dreyfus/the and Dreyfus is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusthe Boston Pany and Dreyfus Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Global Dynamic and Dreyfus/the Boston 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 Dreyfusthe Boston Pany are associated (or correlated) with Dreyfus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Global Dynamic has no effect on the direction of Dreyfus/the Boston i.e., Dreyfus/the Boston and Dreyfus Global go up and down completely randomly.

Pair Corralation between Dreyfus/the Boston and Dreyfus Global

Assuming the 90 days horizon Dreyfusthe Boston Pany is expected to generate 6.14 times more return on investment than Dreyfus Global. However, Dreyfus/the Boston is 6.14 times more volatile than Dreyfus Global Dynamic. It trades about 0.12 of its potential returns per unit of risk. Dreyfus Global Dynamic is currently generating about 0.2 per unit of risk. If you would invest  2,570  in Dreyfusthe Boston Pany on September 1, 2024 and sell it today you would earn a total of  476.00  from holding Dreyfusthe Boston Pany or generate 18.52% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Dreyfusthe Boston Pany  vs.  Dreyfus Global Dynamic

 Performance 
       Timeline  
Dreyfusthe Boston Pany 

Risk-Adjusted Performance

21 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Dreyfusthe Boston Pany are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Dreyfus/the Boston showed solid returns over the last few months and may actually be approaching a breakup point.
Dreyfus Global Dynamic 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Dreyfus Global Dynamic are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Dreyfus Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dreyfus/the Boston and Dreyfus Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dreyfus/the Boston and Dreyfus Global

The main advantage of trading using opposite Dreyfus/the Boston and Dreyfus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/the Boston position performs unexpectedly, Dreyfus 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 Dreyfus Global will offset losses from the drop in Dreyfus Global's long position.
The idea behind Dreyfusthe Boston Pany and Dreyfus Global Dynamic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk