Correlation Between California Bond and Dreyfus/standish
Can any of the company-specific risk be diversified away by investing in both California Bond and Dreyfus/standish 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 California Bond and Dreyfus/standish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California Bond Fund and Dreyfusstandish Global Fixed, you can compare the effects of market volatilities on California Bond and Dreyfus/standish 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 California Bond with a short position of Dreyfus/standish. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Bond and Dreyfus/standish.
Diversification Opportunities for California Bond and Dreyfus/standish
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between California and Dreyfus/standish is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding California Bond Fund and Dreyfusstandish Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusstandish Global and California Bond 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 California Bond Fund are associated (or correlated) with Dreyfus/standish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfusstandish Global has no effect on the direction of California Bond i.e., California Bond and Dreyfus/standish go up and down completely randomly.
Pair Corralation between California Bond and Dreyfus/standish
Assuming the 90 days horizon California Bond Fund is expected to generate 0.48 times more return on investment than Dreyfus/standish. However, California Bond Fund is 2.1 times less risky than Dreyfus/standish. It trades about -0.34 of its potential returns per unit of risk. Dreyfusstandish Global Fixed is currently generating about -0.36 per unit of risk. If you would invest 1,052 in California Bond Fund on October 11, 2024 and sell it today you would lose (20.00) from holding California Bond Fund or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
California Bond Fund vs. Dreyfusstandish Global Fixed
Performance |
| Timeline |
| California Bond |
| Dreyfusstandish Global |
California Bond and Dreyfus/standish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California Bond and Dreyfus/standish
The main advantage of trading using opposite California Bond and Dreyfus/standish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California Bond position performs unexpectedly, Dreyfus/standish 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/standish will offset losses from the drop in Dreyfus/standish's long position.| California Bond vs. Realestaterealreturn Strategy Fund | California Bond vs. Artisan Developing World | California Bond vs. Oberweis Emerging Growth | California Bond vs. Dow 2x Strategy |
| Dreyfus/standish vs. Rbc Ultra Short Fixed | Dreyfus/standish vs. California Bond Fund | Dreyfus/standish vs. Versatile Bond Portfolio | Dreyfus/standish vs. Maryland Tax Free 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |