Correlation Between Europac Gold and Dreyfus Active
Can any of the company-specific risk be diversified away by investing in both Europac Gold and Dreyfus Active 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 Europac Gold and Dreyfus Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Dreyfus Active Midcap, you can compare the effects of market volatilities on Europac Gold and Dreyfus Active 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 Europac Gold with a short position of Dreyfus Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Dreyfus Active.
Diversification Opportunities for Europac Gold and Dreyfus Active
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Europac and Dreyfus is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Dreyfus Active Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Active Midcap and Europac Gold 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 Europac Gold Fund are associated (or correlated) with Dreyfus Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Active Midcap has no effect on the direction of Europac Gold i.e., Europac Gold and Dreyfus Active go up and down completely randomly.
Pair Corralation between Europac Gold and Dreyfus Active
Assuming the 90 days horizon Europac Gold is expected to generate 1.73 times less return on investment than Dreyfus Active. In addition to that, Europac Gold is 2.28 times more volatile than Dreyfus Active Midcap. It trades about 0.06 of its total potential returns per unit of risk. Dreyfus Active Midcap is currently generating about 0.24 per unit of volatility. If you would invest 6,058 in Dreyfus Active Midcap on September 3, 2024 and sell it today you would earn a total of 785.00 from holding Dreyfus Active Midcap or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europac Gold Fund vs. Dreyfus Active Midcap
Performance |
| Timeline |
| Europac Gold |
| Dreyfus Active Midcap |
Europac Gold and Dreyfus Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Dreyfus Active
The main advantage of trading using opposite Europac Gold and Dreyfus Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Dreyfus Active 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 Active will offset losses from the drop in Dreyfus Active's long position.| Europac Gold vs. First Eagle Gold | Europac Gold vs. First Eagle Gold | Europac Gold vs. First Eagle Gold | Europac Gold vs. Oppenheimer Gold Spec |
| Dreyfus Active vs. Vanguard Mid Cap Index | Dreyfus Active vs. Vanguard Mid Cap Index | Dreyfus Active vs. Vanguard Mid Cap Index | Dreyfus Active vs. Vanguard Mid Cap Index |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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