Correlation Between Dreyfus Appreciation and Buffalo High
Can any of the company-specific risk be diversified away by investing in both Dreyfus Appreciation and Buffalo High 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 Appreciation and Buffalo High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Appreciation Fund and Buffalo High Yield, you can compare the effects of market volatilities on Dreyfus Appreciation and Buffalo High 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 Appreciation with a short position of Buffalo High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Appreciation and Buffalo High.
Diversification Opportunities for Dreyfus Appreciation and Buffalo High
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dreyfus and Buffalo is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Appreciation Fund and Buffalo High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buffalo High Yield and Dreyfus Appreciation 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 Appreciation Fund are associated (or correlated) with Buffalo High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buffalo High Yield has no effect on the direction of Dreyfus Appreciation i.e., Dreyfus Appreciation and Buffalo High go up and down completely randomly.
Pair Corralation between Dreyfus Appreciation and Buffalo High
Assuming the 90 days horizon Dreyfus Appreciation Fund is expected to generate 5.86 times more return on investment than Buffalo High. However, Dreyfus Appreciation is 5.86 times more volatile than Buffalo High Yield. It trades about 0.11 of its potential returns per unit of risk. Buffalo High Yield is currently generating about 0.36 per unit of risk. If you would invest 3,805 in Dreyfus Appreciation Fund on September 14, 2024 and sell it today you would earn a total of 811.00 from holding Dreyfus Appreciation Fund or generate 21.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Dreyfus Appreciation Fund vs. Buffalo High Yield
Performance |
| Timeline |
| Dreyfus Appreciation |
| Buffalo High Yield |
Dreyfus Appreciation and Buffalo High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Appreciation and Buffalo High
The main advantage of trading using opposite Dreyfus Appreciation and Buffalo High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Appreciation position performs unexpectedly, Buffalo High 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 Buffalo High will offset losses from the drop in Buffalo High's long position.| Dreyfus Appreciation vs. Buffalo High Yield | Dreyfus Appreciation vs. Strategic Advisers Income | Dreyfus Appreciation vs. City National Rochdale | Dreyfus Appreciation vs. Artisan High Income |
| Buffalo High vs. Buffalo Flexible Income | Buffalo High vs. Buffalo Growth Fund | Buffalo High vs. Buffalo Mid Cap | Buffalo High vs. Buffalo Emerging Opportunities |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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