Correlation Between Apple and Dreyfus Opportunistic
Can any of the company-specific risk be diversified away by investing in both Apple and Dreyfus Opportunistic 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 Apple and Dreyfus Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Dreyfus Opportunistic Small, you can compare the effects of market volatilities on Apple and Dreyfus Opportunistic 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 Apple with a short position of Dreyfus Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Dreyfus Opportunistic.
Diversification Opportunities for Apple and Dreyfus Opportunistic
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Dreyfus is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Dreyfus Opportunistic Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Opportunistic and Apple 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 Apple Inc are associated (or correlated) with Dreyfus Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Opportunistic has no effect on the direction of Apple i.e., Apple and Dreyfus Opportunistic go up and down completely randomly.
Pair Corralation between Apple and Dreyfus Opportunistic
Given the investment horizon of 90 days Apple Inc is expected to under-perform the Dreyfus Opportunistic. In addition to that, Apple is 2.05 times more volatile than Dreyfus Opportunistic Small. It trades about -0.08 of its total potential returns per unit of risk. Dreyfus Opportunistic Small is currently generating about 0.26 per unit of volatility. If you would invest 3,071 in Dreyfus Opportunistic Small on November 3, 2024 and sell it today you would earn a total of 145.00 from holding Dreyfus Opportunistic Small or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Dreyfus Opportunistic Small
Performance |
| Timeline |
| Apple Inc |
| Dreyfus Opportunistic |
Apple and Dreyfus Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Dreyfus Opportunistic
The main advantage of trading using opposite Apple and Dreyfus Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Dreyfus Opportunistic 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 Opportunistic will offset losses from the drop in Dreyfus Opportunistic's long position.The idea behind Apple Inc and Dreyfus Opportunistic Small 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.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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |