Correlation Between Martin Currie and Dreyfus Technology
Can any of the company-specific risk be diversified away by investing in both Martin Currie and Dreyfus Technology 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 Martin Currie and Dreyfus Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Currie Emerging and Dreyfus Technology Growth, you can compare the effects of market volatilities on Martin Currie and Dreyfus Technology 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 Martin Currie with a short position of Dreyfus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Dreyfus Technology.
Diversification Opportunities for Martin Currie and Dreyfus Technology
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Martin and Dreyfus is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Emerging and Dreyfus Technology Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Technology Growth and Martin Currie 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 Martin Currie Emerging are associated (or correlated) with Dreyfus Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Technology Growth has no effect on the direction of Martin Currie i.e., Martin Currie and Dreyfus Technology go up and down completely randomly.
Pair Corralation between Martin Currie and Dreyfus Technology
Assuming the 90 days horizon Martin Currie is expected to generate 1.38 times less return on investment than Dreyfus Technology. But when comparing it to its historical volatility, Martin Currie Emerging is 1.37 times less risky than Dreyfus Technology. It trades about 0.08 of its potential returns per unit of risk. Dreyfus Technology Growth is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,759 in Dreyfus Technology Growth on November 4, 2024 and sell it today you would earn a total of 204.00 from holding Dreyfus Technology Growth or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Emerging vs. Dreyfus Technology Growth
Performance |
| Timeline |
| Martin Currie Emerging |
| Dreyfus Technology Growth |
Martin Currie and Dreyfus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Dreyfus Technology
The main advantage of trading using opposite Martin Currie and Dreyfus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, Dreyfus Technology 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 Technology will offset losses from the drop in Dreyfus Technology's long position.| Martin Currie vs. Intermediate Government Bond | Martin Currie vs. Elfun Government Money | Martin Currie vs. Great West Government Mortgage | Martin Currie vs. Us Government Securities |
| Dreyfus Technology vs. Global Diversified Income | Dreyfus Technology vs. Nasdaq 100 Fund Class | Dreyfus Technology vs. Wells Fargo Diversified | Dreyfus Technology vs. Lord Abbett Diversified |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |