Correlation Between SpringBig Holdings and Dreyfus Technology
Can any of the company-specific risk be diversified away by investing in both SpringBig Holdings 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 SpringBig Holdings and Dreyfus Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpringBig Holdings and Dreyfus Technology Growth, you can compare the effects of market volatilities on SpringBig Holdings 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 SpringBig Holdings with a short position of Dreyfus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpringBig Holdings and Dreyfus Technology.
Diversification Opportunities for SpringBig Holdings and Dreyfus Technology
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SpringBig and DREYFUS is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SpringBig Holdings 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 SpringBig Holdings 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 SpringBig Holdings 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 SpringBig Holdings i.e., SpringBig Holdings and Dreyfus Technology go up and down completely randomly.
Pair Corralation between SpringBig Holdings and Dreyfus Technology
If you would invest 5,812 in Dreyfus Technology Growth on September 3, 2024 and sell it today you would earn a total of 707.00 from holding Dreyfus Technology Growth or generate 12.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
SpringBig Holdings vs. Dreyfus Technology Growth
Performance |
| Timeline |
| SpringBig Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dreyfus Technology Growth |
SpringBig Holdings and Dreyfus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpringBig Holdings and Dreyfus Technology
The main advantage of trading using opposite SpringBig Holdings and Dreyfus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpringBig Holdings 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.| SpringBig Holdings vs. Dave Warrants | SpringBig Holdings vs. SoundHound AI | SpringBig Holdings vs. Swvl Holdings Corp | SpringBig Holdings vs. WM Technology |
| Dreyfus Technology vs. Vanguard Information Technology | Dreyfus Technology vs. Technology Portfolio Technology | Dreyfus Technology vs. Fidelity Select Semiconductors | Dreyfus Technology vs. Software And It |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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