Correlation Between Ms Global and Dreyfus Sustainable

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

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

Diversification Opportunities for Ms Global and Dreyfus Sustainable

0.91

Correlation Coefficient

Ms Global  Dreyfus Sustainable

Almost no diversification

The 3 months correlation between MFIRX and Dreyfus is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ms Global Fixed and The Dreyfus Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Dreyfus Sustainable and Ms Global 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 Ms Global Fixed are associated (or correlated) with Dreyfus Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Dreyfus Sustainable has no effect on the direction of Ms Global i.e., Ms Global and Dreyfus Sustainable go up and down completely randomly.

Pair Corralation between Ms Global and Dreyfus Sustainable

Assuming the 90 days horizon Ms Global is expected to generate 5.69 times less return on investment than Dreyfus Sustainable. But when comparing it to its historical volatility, Ms Global Fixed is 4.15 times less risky than Dreyfus Sustainable. It trades about 0.23 of its potential returns per unit of risk. The Dreyfus Sustainable is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  1,807  in The Dreyfus Sustainable on May 2, 2025 and sell it today you would earn a total of  270.00  from holding The Dreyfus Sustainable or generate 14.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Ms Global Fixed  vs.  The Dreyfus Sustainable

Ms Global Fixed

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ms Global Fixed are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ms Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

The Dreyfus Sustainable

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Dreyfus Sustainable are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Dreyfus Sustainable showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ms Global and Dreyfus Sustainable

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

The idea behind Ms Global Fixed and The Dreyfus Sustainable 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.