Correlation Between Dreyfus Technology and Artisan Select
Can any of the company-specific risk be diversified away by investing in both Dreyfus Technology and Artisan Select 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 Technology and Artisan Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Technology Growth and Artisan Select Equity, you can compare the effects of market volatilities on Dreyfus Technology and Artisan Select 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 Technology with a short position of Artisan Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Technology and Artisan Select.
Diversification Opportunities for Dreyfus Technology and Artisan Select
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dreyfus and Artisan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Technology Growth and Artisan Select Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Select Equity and Dreyfus Technology 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 Technology Growth are associated (or correlated) with Artisan Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Select Equity has no effect on the direction of Dreyfus Technology i.e., Dreyfus Technology and Artisan Select go up and down completely randomly.
Pair Corralation between Dreyfus Technology and Artisan Select
Assuming the 90 days horizon Dreyfus Technology Growth is expected to generate 1.7 times more return on investment than Artisan Select. However, Dreyfus Technology is 1.7 times more volatile than Artisan Select Equity. It trades about 0.16 of its potential returns per unit of risk. Artisan Select Equity is currently generating about 0.23 per unit of risk. If you would invest 7,716 in Dreyfus Technology Growth on August 28, 2024 and sell it today you would earn a total of 321.00 from holding Dreyfus Technology Growth or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Technology Growth vs. Artisan Select Equity
Performance |
| Timeline |
| Dreyfus Technology Growth |
| Artisan Select Equity |
Dreyfus Technology and Artisan Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Technology and Artisan Select
The main advantage of trading using opposite Dreyfus Technology and Artisan Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Technology position performs unexpectedly, Artisan Select 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 Artisan Select will offset losses from the drop in Artisan Select's long position.| Dreyfus Technology vs. Clearbridge Energy Mlp | Dreyfus Technology vs. Hennessy Bp Energy | Dreyfus Technology vs. Firsthand Alternative Energy | Dreyfus Technology vs. Jennison Natural Resources |
| Artisan Select vs. Artisan Developing World | Artisan Select vs. Artisan Focus | Artisan Select vs. Artisan Small Cap | Artisan Select vs. Artisan Global 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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