Correlation Between Wesmark Government and Dreyfus Government
Can any of the company-specific risk be diversified away by investing in both Wesmark Government and Dreyfus Government 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 Wesmark Government and Dreyfus Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesmark Government Bond and Dreyfus Government Cash, you can compare the effects of market volatilities on Wesmark Government and Dreyfus Government 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 Wesmark Government with a short position of Dreyfus Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesmark Government and Dreyfus Government.
Diversification Opportunities for Wesmark Government and Dreyfus Government
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wesmark and Dreyfus is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Wesmark Government Bond and Dreyfus Government Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Government Cash and Wesmark Government 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 Wesmark Government Bond are associated (or correlated) with Dreyfus Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Government Cash has no effect on the direction of Wesmark Government i.e., Wesmark Government and Dreyfus Government go up and down completely randomly.
Pair Corralation between Wesmark Government and Dreyfus Government
If you would invest 771.00 in Wesmark Government Bond on October 23, 2024 and sell it today you would earn a total of 2.00 from holding Wesmark Government Bond or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Wesmark Government Bond vs. Dreyfus Government Cash
Performance |
| Timeline |
| Wesmark Government Bond |
| Dreyfus Government Cash |
Wesmark Government and Dreyfus Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesmark Government and Dreyfus Government
The main advantage of trading using opposite Wesmark Government and Dreyfus Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesmark Government position performs unexpectedly, Dreyfus Government 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 Government will offset losses from the drop in Dreyfus Government's long position.| Wesmark Government vs. Wesmark Growth Fund | Wesmark Government vs. Wesmark Small Pany | Wesmark Government vs. Wesmark Balanced Fund | Wesmark Government vs. Wesmark West Virginia |
| Dreyfus Government vs. Hennessy Bp Energy | Dreyfus Government vs. Transamerica Mlp Energy | Dreyfus Government vs. Vanguard Energy Index | Dreyfus Government vs. Thrivent Natural Resources |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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