Correlation Between Summit Global and Dreyfus Technology
Can any of the company-specific risk be diversified away by investing in both Summit Global 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 Summit Global and Dreyfus Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Global Investments and Dreyfus Technology Growth, you can compare the effects of market volatilities on Summit Global 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 Summit Global with a short position of Dreyfus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Global and Dreyfus Technology.
Diversification Opportunities for Summit Global and Dreyfus Technology
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Summit and Dreyfus is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Summit Global Investments 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 Summit Global 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 Summit Global Investments 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 Summit Global i.e., Summit Global and Dreyfus Technology go up and down completely randomly.
Pair Corralation between Summit Global and Dreyfus Technology
Assuming the 90 days horizon Summit Global is expected to generate 72.19 times less return on investment than Dreyfus Technology. But when comparing it to its historical volatility, Summit Global Investments is 1.26 times less risky than Dreyfus Technology. It trades about 0.0 of its potential returns per unit of risk. Dreyfus Technology Growth is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,508 in Dreyfus Technology Growth on October 16, 2024 and sell it today you would earn a total of 3,104 from holding Dreyfus Technology Growth or generate 68.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Global Investments vs. Dreyfus Technology Growth
Performance |
| Timeline |
| Summit Global Investments |
| Dreyfus Technology Growth |
Summit Global and Dreyfus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Global and Dreyfus Technology
The main advantage of trading using opposite Summit Global and Dreyfus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Global 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.| Summit Global vs. Gold And Precious | Summit Global vs. The Gold Bullion | Summit Global vs. Franklin Gold Precious | Summit Global vs. International Investors Gold |
| Dreyfus Technology vs. Summit Global Investments | Dreyfus Technology vs. Alliancebernstein Global Highome | Dreyfus Technology vs. Morgan Stanley Global | Dreyfus Technology vs. Investec Global Franchise |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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