Correlation Between Dreyfus Technology and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Dreyfus Technology and Harding Loevner 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 Harding Loevner 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 Harding Loevner Frontier, you can compare the effects of market volatilities on Dreyfus Technology and Harding Loevner 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 Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Technology and Harding Loevner.
Diversification Opportunities for Dreyfus Technology and Harding Loevner
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dreyfus and Harding is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Technology Growth and Harding Loevner Frontier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Frontier 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 Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Frontier has no effect on the direction of Dreyfus Technology i.e., Dreyfus Technology and Harding Loevner go up and down completely randomly.
Pair Corralation between Dreyfus Technology and Harding Loevner
Assuming the 90 days horizon Dreyfus Technology Growth is expected to generate 2.24 times more return on investment than Harding Loevner. However, Dreyfus Technology is 2.24 times more volatile than Harding Loevner Frontier. It trades about 0.35 of its potential returns per unit of risk. Harding Loevner Frontier is currently generating about -0.18 per unit of risk. If you would invest 7,572 in Dreyfus Technology Growth on September 4, 2024 and sell it today you would earn a total of 579.00 from holding Dreyfus Technology Growth or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Technology Growth vs. Harding Loevner Frontier
Performance |
| Timeline |
| Dreyfus Technology Growth |
| Harding Loevner Frontier |
Dreyfus Technology and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Technology and Harding Loevner
The main advantage of trading using opposite Dreyfus Technology and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Technology position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.| Dreyfus Technology vs. T Rowe Price | Dreyfus Technology vs. Transamerica Emerging Markets | Dreyfus Technology vs. Black Oak Emerging | Dreyfus Technology vs. T Rowe Price |
| Harding Loevner vs. Calamos Global Equity | Harding Loevner vs. Ms Global Fixed | Harding Loevner vs. Balanced Fund Retail | Harding Loevner vs. Small Cap Equity |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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