Correlation Between Smead Funds and Dreyfus Technology
Can any of the company-specific risk be diversified away by investing in both Smead Funds 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 Smead Funds and Dreyfus Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smead Funds Trust and Dreyfus Technology Growth, you can compare the effects of market volatilities on Smead Funds 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 Smead Funds with a short position of Dreyfus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smead Funds and Dreyfus Technology.
Diversification Opportunities for Smead Funds and Dreyfus Technology
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Smead and Dreyfus is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Smead Funds Trust 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 Smead Funds 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 Smead Funds Trust 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 Smead Funds i.e., Smead Funds and Dreyfus Technology go up and down completely randomly.
Pair Corralation between Smead Funds and Dreyfus Technology
Assuming the 90 days horizon Smead Funds Trust is expected to generate 0.8 times more return on investment than Dreyfus Technology. However, Smead Funds Trust is 1.24 times less risky than Dreyfus Technology. It trades about 0.05 of its potential returns per unit of risk. Dreyfus Technology Growth is currently generating about 0.02 per unit of risk. If you would invest 5,663 in Smead Funds Trust on September 13, 2024 and sell it today you would earn a total of 46.00 from holding Smead Funds Trust or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Smead Funds Trust vs. Dreyfus Technology Growth
Performance |
| Timeline |
| Smead Funds Trust |
| Dreyfus Technology Growth |
Smead Funds and Dreyfus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smead Funds and Dreyfus Technology
The main advantage of trading using opposite Smead Funds and Dreyfus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smead Funds 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.| Smead Funds vs. Dreyfus Technology Growth | Smead Funds vs. Fidelity Advisor Technology | Smead Funds vs. Biotechnology Ultrasector Profund | Smead Funds vs. Towpath Technology |
| Dreyfus Technology vs. Veea Inc | Dreyfus Technology vs. VivoPower International PLC | Dreyfus Technology vs. Dreyfus High Yield | Dreyfus Technology vs. Dreyfusthe Boston Pany |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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