Correlation Between Amg Managers and Dreyfus/standish

Can any of the company-specific risk be diversified away by investing in both Amg Managers 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 Amg Managers and Dreyfus/standish into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amg Managers Brandywine and Dreyfusstandish Global Fixed, you can compare the effects of market volatilities on Amg Managers 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 Amg Managers with a short position of Dreyfus/standish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Dreyfus/standish.

Diversification Opportunities for Amg Managers and Dreyfus/standish

0.3

Correlation Coefficient

Amg Managers  Dreyfus/standish

Weak diversification

The 3 months correlation between Amg and Dreyfus/standish is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Brandywine and Dreyfusstandish Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusstandish Global and Amg Managers 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 Amg Managers Brandywine 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 Amg Managers i.e., Amg Managers and Dreyfus/standish go up and down completely randomly.

Pair Corralation between Amg Managers and Dreyfus/standish

Assuming the 90 days horizon Amg Managers is expected to generate 6.42 times less return on investment than Dreyfus/standish. In addition to that, Amg Managers is 2.12 times more volatile than Dreyfusstandish Global Fixed. It trades about 0.0 of its total potential returns per unit of risk. Dreyfusstandish Global Fixed is currently generating about 0.06 per unit of volatility. If you would invest  1,937  in Dreyfusstandish Global Fixed on December 3, 2024 and sell it today you would earn a total of  14.00  from holding Dreyfusstandish Global Fixed or generate 0.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Amg Managers Brandywine  vs.  Dreyfusstandish Global Fixed

Amg Managers Brandywine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amg Managers Brandywine has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Amg Managers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dreyfusstandish Global

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dreyfusstandish Global Fixed are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Dreyfus/standish is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amg Managers and Dreyfus/standish

The main advantage of trading using opposite Amg Managers and Dreyfus/standish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers 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.

The idea behind Amg Managers Brandywine and Dreyfusstandish Global Fixed 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.