Correlation Between Dreyfus Amt and Dreyfus New

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Dreyfus Amt and Dreyfus New 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 Amt and Dreyfus New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Amt Free Municipal and Dreyfus New Jersey, you can compare the effects of market volatilities on Dreyfus Amt and Dreyfus New 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 Amt with a short position of Dreyfus New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Amt and Dreyfus New.

Diversification Opportunities for Dreyfus Amt and Dreyfus New

0.99
  Correlation Coefficient

No risk reduction

The 3 months correlation between Dreyfus and Dreyfus is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Amt Free Municipal and Dreyfus New Jersey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus New Jersey and Dreyfus Amt 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 Amt Free Municipal are associated (or correlated) with Dreyfus New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus New Jersey has no effect on the direction of Dreyfus Amt i.e., Dreyfus Amt and Dreyfus New go up and down completely randomly.

Pair Corralation between Dreyfus Amt and Dreyfus New

Assuming the 90 days horizon Dreyfus Amt Free Municipal is expected to generate 0.98 times more return on investment than Dreyfus New. However, Dreyfus Amt Free Municipal is 1.02 times less risky than Dreyfus New. It trades about 0.07 of its potential returns per unit of risk. Dreyfus New Jersey is currently generating about 0.06 per unit of risk. If you would invest  1,233  in Dreyfus Amt Free Municipal on September 23, 2024 and sell it today you would earn a total of  97.00  from holding Dreyfus Amt Free Municipal or generate 7.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Dreyfus Amt Free Municipal  vs.  Dreyfus New Jersey

 Performance 
       Timeline  
Dreyfus Amt Free 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Dreyfus Amt Free Municipal has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Dreyfus Amt is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Dreyfus New Jersey 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Dreyfus New Jersey has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Dreyfus New is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dreyfus Amt and Dreyfus New Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dreyfus Amt and Dreyfus New

The main advantage of trading using opposite Dreyfus Amt and Dreyfus New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Amt position performs unexpectedly, Dreyfus New 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 New will offset losses from the drop in Dreyfus New's long position.
The idea behind Dreyfus Amt Free Municipal and Dreyfus New Jersey 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
CEOs Directory
Screen CEOs from public companies around the world
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Commodity Directory
Find actively traded commodities issued by global exchanges