Correlation Between Rbb Fund and Dreyfus Research

Can any of the company-specific risk be diversified away by investing in both Rbb Fund and Dreyfus Research 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 Rbb Fund and Dreyfus Research into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Rbb Fund Trust and Dreyfus Research Growth, you can compare the effects of market volatilities on Rbb Fund and Dreyfus Research 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 Rbb Fund with a short position of Dreyfus Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbb Fund and Dreyfus Research.

Diversification Opportunities for Rbb Fund and Dreyfus Research

-0.27

Correlation Coefficient

Rbb Fund  Dreyfus Research

Very good diversification

The 3 months correlation between Rbb and Dreyfus is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Rbb Fund Trust and Dreyfus Research Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Research Growth and Rbb 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 Rbb Fund Trust are associated (or correlated) with Dreyfus Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Research Growth has no effect on the direction of Rbb Fund i.e., Rbb Fund and Dreyfus Research go up and down completely randomly.

Pair Corralation between Rbb Fund and Dreyfus Research

Assuming the 90 days horizon Rbb Fund Trust is expected to generate 0.47 times more return on investment than Dreyfus Research. However, Rbb Fund Trust is 2.12 times less risky than Dreyfus Research. It trades about 0.09 of its potential returns per unit of risk. Dreyfus Research Growth is currently generating about -0.1 per unit of risk. If you would invest  1,086  in Rbb Fund Trust on December 19, 2024 and sell it today you would earn a total of  43.00  from holding Rbb Fund Trust or generate 3.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Rbb Fund Trust  vs.  Dreyfus Research Growth

Rbb Fund Trust

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Rbb Fund Trust are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Rbb Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dreyfus Research Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dreyfus Research Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Rbb Fund and Dreyfus Research

The main advantage of trading using opposite Rbb Fund and Dreyfus Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbb Fund position performs unexpectedly, Dreyfus Research 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 Research will offset losses from the drop in Dreyfus Research's long position.

The idea behind Rbb Fund Trust and Dreyfus Research Growth 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.