Correlation Between Dreyfus Gnma and Dreyfus Municipal
Can any of the company-specific risk be diversified away by investing in both Dreyfus Gnma and Dreyfus Municipal 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 Gnma and Dreyfus Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Gnma Fund and Dreyfus Municipal Bond, you can compare the effects of market volatilities on Dreyfus Gnma and Dreyfus Municipal 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 Gnma with a short position of Dreyfus Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Gnma and Dreyfus Municipal.
Diversification Opportunities for Dreyfus Gnma and Dreyfus Municipal
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dreyfus and Dreyfus is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Gnma Fund and Dreyfus Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Municipal Bond and Dreyfus Gnma 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 Gnma Fund are associated (or correlated) with Dreyfus Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Municipal Bond has no effect on the direction of Dreyfus Gnma i.e., Dreyfus Gnma and Dreyfus Municipal go up and down completely randomly.
Pair Corralation between Dreyfus Gnma and Dreyfus Municipal
If you would invest 1,243 in Dreyfus Gnma Fund on September 26, 2024 and sell it today you would earn a total of 13.00 from holding Dreyfus Gnma Fund or generate 1.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 0.8% |
Values | Daily Returns |
Dreyfus Gnma Fund vs. Dreyfus Municipal Bond
Performance |
Timeline |
Dreyfus Gnma |
Dreyfus Municipal Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dreyfus Gnma and Dreyfus Municipal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dreyfus Gnma and Dreyfus Municipal
The main advantage of trading using opposite Dreyfus Gnma and Dreyfus Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Gnma position performs unexpectedly, Dreyfus Municipal 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 Municipal will offset losses from the drop in Dreyfus Municipal's long position.Dreyfus Gnma vs. Dreyfusstandish Global Fixed | Dreyfus Gnma vs. Dreyfusstandish Global Fixed | Dreyfus Gnma vs. Dreyfus High Yield | Dreyfus Gnma vs. Dreyfus High Yield |
Dreyfus Municipal vs. Dreyfus Intermediate Municipal | Dreyfus Municipal vs. Dreyfus Gnma Fund | Dreyfus Municipal vs. Fidelity Municipal Income | Dreyfus Municipal vs. T Rowe Price |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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