Correlation Between Siit High and Dreyfus Active
Can any of the company-specific risk be diversified away by investing in both Siit High and Dreyfus Active 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 Siit High and Dreyfus Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Dreyfus Active Midcap, you can compare the effects of market volatilities on Siit High and Dreyfus Active 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 Siit High with a short position of Dreyfus Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Dreyfus Active.
Diversification Opportunities for Siit High and Dreyfus Active
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Dreyfus is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Dreyfus Active Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Active Midcap and Siit High 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 Siit High Yield are associated (or correlated) with Dreyfus Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Active Midcap has no effect on the direction of Siit High i.e., Siit High and Dreyfus Active go up and down completely randomly.
Pair Corralation between Siit High and Dreyfus Active
Assuming the 90 days horizon Siit High is expected to generate 32.37 times less return on investment than Dreyfus Active. But when comparing it to its historical volatility, Siit High Yield is 7.09 times less risky than Dreyfus Active. It trades about 0.1 of its potential returns per unit of risk. Dreyfus Active Midcap is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 5,355 in Dreyfus Active Midcap on September 2, 2024 and sell it today you would earn a total of 504.00 from holding Dreyfus Active Midcap or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Dreyfus Active Midcap
Performance |
| Timeline |
| Siit High Yield |
| Dreyfus Active Midcap |
Siit High and Dreyfus Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Dreyfus Active
The main advantage of trading using opposite Siit High and Dreyfus Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Dreyfus Active 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 Active will offset losses from the drop in Dreyfus Active's long position.| Siit High vs. Simt Multi Asset Accumulation | Siit High vs. Saat Market Growth | Siit High vs. Simt Real Return | Siit High vs. Simt Small Cap |
| Dreyfus Active vs. California High Yield Municipal | Dreyfus Active vs. Pace High Yield | Dreyfus Active vs. Ab Global Risk | Dreyfus Active vs. Siit High Yield |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| 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 | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |