Correlation Between Dreyfus/standish and Siit Screened

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

By analyzing existing cross correlation between Dreyfusstandish Global Fixed and Siit Screened World, you can compare the effects of market volatilities on Dreyfus/standish and Siit Screened 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/standish with a short position of Siit Screened. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Siit Screened.

Diversification Opportunities for Dreyfus/standish and Siit Screened

-0.02

Correlation Coefficient

Dreyfus/standish  Siit Screened

Good diversification

The 3 months correlation between Dreyfus/standish and Siit is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Siit Screened World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Screened World and Dreyfus/standish 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 Dreyfusstandish Global Fixed are associated (or correlated) with Siit Screened. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Screened World has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Siit Screened go up and down completely randomly.

Pair Corralation between Dreyfus/standish and Siit Screened

Assuming the 90 days horizon Dreyfusstandish Global Fixed is expected to under-perform the Siit Screened. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dreyfusstandish Global Fixed is 5.23 times less risky than Siit Screened. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Siit Screened World is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,190  in Siit Screened World on February 15, 2025 and sell it today you would earn a total of  38.00  from holding Siit Screened World or generate 3.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.73%
Values	Daily Returns

Dreyfusstandish Global Fixed  vs.  Siit Screened World

Dreyfusstandish Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dreyfusstandish Global Fixed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Dreyfus/standish is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Siit Screened World

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Screened World are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Siit Screened is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Dreyfus/standish and Siit Screened

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

The idea behind Dreyfusstandish Global Fixed and Siit Screened World 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.