Correlation Between Dreyfus Short and Frost Credit
Can any of the company-specific risk be diversified away by investing in both Dreyfus Short and Frost Credit 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 Dreyfus Short and Frost Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Short Intermediate and Frost Credit Fund, you can compare the effects of market volatilities on Dreyfus Short and Frost Credit 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 Dreyfus Short with a short position of Frost Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Short and Frost Credit.
Diversification Opportunities for Dreyfus Short and Frost Credit
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dreyfus and Frost is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Short Intermediate and Frost Credit Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frost Credit and Dreyfus Short 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 Dreyfus Short Intermediate are associated (or correlated) with Frost Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frost Credit has no effect on the direction of Dreyfus Short i.e., Dreyfus Short and Frost Credit go up and down completely randomly.
Pair Corralation between Dreyfus Short and Frost Credit
Assuming the 90 days horizon Dreyfus Short Intermediate is expected to under-perform the Frost Credit. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dreyfus Short Intermediate is 2.03 times less risky than Frost Credit. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Frost Credit Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 945.00 in Frost Credit Fund on September 18, 2024 and sell it today you would earn a total of 4.00 from holding Frost Credit Fund or generate 0.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Dreyfus Short Intermediate vs. Frost Credit Fund
Performance |
Timeline |
Dreyfus Short Interm |
Frost Credit |
Dreyfus Short and Frost Credit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dreyfus Short and Frost Credit
The main advantage of trading using opposite Dreyfus Short and Frost Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Short position performs unexpectedly, Frost Credit 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 Frost Credit will offset losses from the drop in Frost Credit's long position.Dreyfus Short vs. Dreyfus High Yield | Dreyfus Short vs. Dreyfusthe Boston Pany | Dreyfus Short vs. Dreyfus International Bond | Dreyfus Short vs. Dreyfus International Bond |
Frost Credit vs. Dreyfus Short Intermediate | Frost Credit vs. Quantitative Longshort Equity | Frost Credit vs. Easterly Snow Longshort | Frost Credit vs. Prudential Short Duration |
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 Stocks Directory module to find actively traded stocks across global markets.
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