Correlation Between Dreyfus Short and Value Fund
Can any of the company-specific risk be diversified away by investing in both Dreyfus Short and Value Fund 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 Short and Value Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Short Intermediate and Value Fund I, you can compare the effects of market volatilities on Dreyfus Short and Value Fund 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 Short with a short position of Value Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Short and Value Fund.
Diversification Opportunities for Dreyfus Short and Value Fund
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dreyfus and Value is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Short Intermediate and Value Fund I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund I and Dreyfus Short 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 Short Intermediate are associated (or correlated) with Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund I has no effect on the direction of Dreyfus Short i.e., Dreyfus Short and Value Fund go up and down completely randomly.
Pair Corralation between Dreyfus Short and Value Fund
Assuming the 90 days horizon Dreyfus Short is expected to generate 4.04 times less return on investment than Value Fund. But when comparing it to its historical volatility, Dreyfus Short Intermediate is 8.52 times less risky than Value Fund. It trades about 0.16 of its potential returns per unit of risk. Value Fund I is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 654.00 in Value Fund I on June 12, 2025 and sell it today you would earn a total of 193.00 from holding Value Fund I or generate 29.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Short Intermediate vs. Value Fund I
Performance |
| Timeline |
| Dreyfus Short Interm |
| Value Fund I |
Dreyfus Short and Value Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Short and Value Fund
The main advantage of trading using opposite Dreyfus Short and Value Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Short position performs unexpectedly, Value Fund 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 Value Fund will offset losses from the drop in Value Fund's long position.| Dreyfus Short vs. Ultra Short Fixed Income | Dreyfus Short vs. Angel Oak Ultrashort | Dreyfus Short vs. Fidelity Flex Servative | Dreyfus Short vs. American Funds Tax Exempt |
| Value Fund vs. Pace Municipal Fixed | Value Fund vs. Prudential California Muni | Value Fund vs. Old Westbury Municipal | Value Fund vs. Bbh Intermediate Municipal |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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