Correlation Between Dreyfus Fund and Dreyfus International
Can any of the company-specific risk be diversified away by investing in both Dreyfus Fund and Dreyfus International 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 Fund and Dreyfus International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Fund Inc and Dreyfus International Equity, you can compare the effects of market volatilities on Dreyfus Fund and Dreyfus International 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 Fund with a short position of Dreyfus International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Fund and Dreyfus International.
Diversification Opportunities for Dreyfus Fund and Dreyfus International
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dreyfus and Dreyfus is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Fund Inc and Dreyfus International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus International and Dreyfus Fund 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 Fund Inc are associated (or correlated) with Dreyfus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus International has no effect on the direction of Dreyfus Fund i.e., Dreyfus Fund and Dreyfus International go up and down completely randomly.
Pair Corralation between Dreyfus Fund and Dreyfus International
Assuming the 90 days horizon Dreyfus Fund Inc is expected to under-perform the Dreyfus International. In addition to that, Dreyfus Fund is 2.43 times more volatile than Dreyfus International Equity. It trades about -0.23 of its total potential returns per unit of risk. Dreyfus International Equity is currently generating about -0.17 per unit of volatility. If you would invest 3,805 in Dreyfus International Equity on September 24, 2024 and sell it today you would lose (99.00) from holding Dreyfus International Equity or give up 2.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dreyfus Fund Inc vs. Dreyfus International Equity
Performance |
Timeline |
Dreyfus Fund |
Dreyfus International |
Dreyfus Fund and Dreyfus International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dreyfus Fund and Dreyfus International
The main advantage of trading using opposite Dreyfus Fund and Dreyfus International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Fund position performs unexpectedly, Dreyfus International 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 International will offset losses from the drop in Dreyfus International's long position.Dreyfus Fund vs. Dreyfusstandish Global Fixed | Dreyfus Fund vs. Dreyfusstandish Global Fixed | Dreyfus Fund vs. Dreyfus High Yield | Dreyfus Fund vs. Dreyfus High Yield |
Dreyfus International vs. Dreyfusstandish Global Fixed | Dreyfus International vs. Dreyfusstandish Global Fixed | Dreyfus International vs. Dreyfus High Yield | Dreyfus International vs. Dreyfus High Yield |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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