Correlation Between Dow Jones and Dreyfus/standish
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Dreyfus/standish 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 Dow Jones and Dreyfus/standish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Dreyfusstandish Global Fixed, you can compare the effects of market volatilities on Dow Jones and Dreyfus/standish 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 Dow Jones with a short position of Dreyfus/standish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Dreyfus/standish.
Diversification Opportunities for Dow Jones and Dreyfus/standish
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dow and Dreyfus/standish is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Dreyfusstandish Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusstandish Global and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Dreyfus/standish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfusstandish Global has no effect on the direction of Dow Jones i.e., Dow Jones and Dreyfus/standish go up and down completely randomly.
Pair Corralation between Dow Jones and Dreyfus/standish
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 4.27 times more return on investment than Dreyfus/standish. However, Dow Jones is 4.27 times more volatile than Dreyfusstandish Global Fixed. It trades about 0.14 of its potential returns per unit of risk. Dreyfusstandish Global Fixed is currently generating about 0.19 per unit of risk. If you would invest 4,491,182 in Dow Jones Industrial on August 16, 2025 and sell it today you would earn a total of 254,540 from holding Dow Jones Industrial or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Dreyfusstandish Global Fixed
Performance |
| Timeline |
Dow Jones and Dreyfus/standish Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Dreyfusstandish Global Fixed
Pair trading matchups for Dreyfus/standish
Pair Trading with Dow Jones and Dreyfus/standish
The main advantage of trading using opposite Dow Jones and Dreyfus/standish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Dreyfus/standish 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/standish will offset losses from the drop in Dreyfus/standish's long position.| Dow Jones vs. Spirent Communications plc | Dow Jones vs. CanSino Biologics | Dow Jones vs. Hutchison Telecommunications Hong | Dow Jones vs. Cass Information Systems |
| Dreyfus/standish vs. Dreyfus High Yield | Dreyfus/standish vs. Dreyfus High Yield | Dreyfus/standish vs. Dreyfus High Yield | Dreyfus/standish vs. Dreyfus New Jersey |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |