Correlation Between Saat Moderate and Dreyfus Amt
Can any of the company-specific risk be diversified away by investing in both Saat Moderate and Dreyfus Amt 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 Saat Moderate and Dreyfus Amt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Moderate Strategy and Dreyfus Amt Free Municipal, you can compare the effects of market volatilities on Saat Moderate and Dreyfus Amt 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 Saat Moderate with a short position of Dreyfus Amt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Dreyfus Amt.
Diversification Opportunities for Saat Moderate and Dreyfus Amt
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saat and Dreyfus is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and Dreyfus Amt Free Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Amt Free and Saat Moderate 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 Saat Moderate Strategy are associated (or correlated) with Dreyfus Amt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Amt Free has no effect on the direction of Saat Moderate i.e., Saat Moderate and Dreyfus Amt go up and down completely randomly.
Pair Corralation between Saat Moderate and Dreyfus Amt
Assuming the 90 days horizon Saat Moderate Strategy is expected to generate 1.26 times more return on investment than Dreyfus Amt. However, Saat Moderate is 1.26 times more volatile than Dreyfus Amt Free Municipal. It trades about 0.11 of its potential returns per unit of risk. Dreyfus Amt Free Municipal is currently generating about 0.07 per unit of risk. If you would invest 1,054 in Saat Moderate Strategy on September 1, 2024 and sell it today you would earn a total of 137.00 from holding Saat Moderate Strategy or generate 13.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Moderate Strategy vs. Dreyfus Amt Free Municipal
Performance |
| Timeline |
| Saat Moderate Strategy |
| Dreyfus Amt Free |
Saat Moderate and Dreyfus Amt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Moderate and Dreyfus Amt
The main advantage of trading using opposite Saat Moderate and Dreyfus Amt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate position performs unexpectedly, Dreyfus Amt 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 Amt will offset losses from the drop in Dreyfus Amt's long position.| Saat Moderate vs. The Gabelli Small | Saat Moderate vs. Jhancock Diversified Macro | Saat Moderate vs. Delaware Limited Term Diversified | Saat Moderate vs. Lord Abbett Diversified |
| Dreyfus Amt vs. Inflation Protected Bond Fund | Dreyfus Amt vs. Calamos Dynamic Convertible | Dreyfus Amt vs. Maryland Tax Free Bond | Dreyfus Amt vs. Ft 7934 Corporate |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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