Correlation Between Dreyfus Short and Ing Intermediate
Can any of the company-specific risk be diversified away by investing in both Dreyfus Short and Ing Intermediate 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 Ing Intermediate 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 Ing Intermediate Bond, you can compare the effects of market volatilities on Dreyfus Short and Ing Intermediate 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 Ing Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Short and Ing Intermediate.
Diversification Opportunities for Dreyfus Short and Ing Intermediate
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dreyfus and Ing is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Short Intermediate and Ing Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Intermediate Bond 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 Ing Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Intermediate Bond has no effect on the direction of Dreyfus Short i.e., Dreyfus Short and Ing Intermediate go up and down completely randomly.
Pair Corralation between Dreyfus Short and Ing Intermediate
Assuming the 90 days horizon Dreyfus Short Intermediate is expected to generate 0.32 times more return on investment than Ing Intermediate. However, Dreyfus Short Intermediate is 3.14 times less risky than Ing Intermediate. It trades about -0.08 of its potential returns per unit of risk. Ing Intermediate Bond is currently generating about -0.18 per unit of risk. If you would invest 1,280 in Dreyfus Short Intermediate on September 25, 2024 and sell it today you would lose (6.00) from holding Dreyfus Short Intermediate or give up 0.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Dreyfus Short Intermediate vs. Ing Intermediate Bond
Performance |
Timeline |
Dreyfus Short Interm |
Ing Intermediate Bond |
Dreyfus Short and Ing Intermediate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dreyfus Short and Ing Intermediate
The main advantage of trading using opposite Dreyfus Short and Ing Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Short position performs unexpectedly, Ing Intermediate 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 Ing Intermediate will offset losses from the drop in Ing Intermediate'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 |
Ing Intermediate vs. Alpine Ultra Short | Ing Intermediate vs. Dreyfus Short Intermediate | Ing Intermediate vs. Delaware Investments Ultrashort | Ing Intermediate 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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