Correlation Between Dreyfusstandish Global and Cullen Small
Can any of the company-specific risk be diversified away by investing in both Dreyfusstandish Global and Cullen Small 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 Dreyfusstandish Global and Cullen Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfusstandish Global Fixed and Cullen Small Cap, you can compare the effects of market volatilities on Dreyfusstandish Global and Cullen Small 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 Dreyfusstandish Global with a short position of Cullen Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfusstandish Global and Cullen Small.
Diversification Opportunities for Dreyfusstandish Global and Cullen Small
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dreyfusstandish and Cullen is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Cullen Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen Small Cap and Dreyfusstandish Global 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 Dreyfusstandish Global Fixed are associated (or correlated) with Cullen Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen Small Cap has no effect on the direction of Dreyfusstandish Global i.e., Dreyfusstandish Global and Cullen Small go up and down completely randomly.
Pair Corralation between Dreyfusstandish Global and Cullen Small
Assuming the 90 days horizon Dreyfusstandish Global Fixed is expected to under-perform the Cullen Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dreyfusstandish Global Fixed is 7.81 times less risky than Cullen Small. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Cullen Small Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,250 in Cullen Small Cap on September 12, 2024 and sell it today you would earn a total of 92.00 from holding Cullen Small Cap or generate 7.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Cullen Small Cap
Performance |
Timeline |
Dreyfusstandish Global |
Cullen Small Cap |
Dreyfusstandish Global and Cullen Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dreyfusstandish Global and Cullen Small
The main advantage of trading using opposite Dreyfusstandish Global and Cullen Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfusstandish Global position performs unexpectedly, Cullen Small 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 Cullen Small will offset losses from the drop in Cullen Small's long position.Dreyfusstandish Global vs. Dreyfusstandish Global Fixed | Dreyfusstandish Global vs. Dreyfus High Yield | Dreyfusstandish Global vs. Dreyfus High Yield | Dreyfusstandish Global vs. Dreyfus High Yield |
Cullen Small vs. Cutler Equity | Cullen Small vs. Calamos Global Equity | Cullen Small vs. Scharf Fund Retail | Cullen Small vs. Ms Global Fixed |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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