Correlation Between Dreyfus Technology and Growth Fund
Can any of the company-specific risk be diversified away by investing in both Dreyfus Technology and Growth Fund 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 Dreyfus Technology and Growth Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Technology Growth and Growth Fund Of, you can compare the effects of market volatilities on Dreyfus Technology and Growth Fund 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 Dreyfus Technology with a short position of Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Technology and Growth Fund.
Diversification Opportunities for Dreyfus Technology and Growth Fund
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dreyfus and Growth is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Technology Growth and Growth Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund and Dreyfus Technology 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 Dreyfus Technology Growth are associated (or correlated) with Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of Dreyfus Technology i.e., Dreyfus Technology and Growth Fund go up and down completely randomly.
Pair Corralation between Dreyfus Technology and Growth Fund
Assuming the 90 days horizon Dreyfus Technology Growth is expected to generate 1.27 times more return on investment than Growth Fund. However, Dreyfus Technology is 1.27 times more volatile than Growth Fund Of. It trades about 0.17 of its potential returns per unit of risk. Growth Fund Of is currently generating about 0.19 per unit of risk. If you would invest 8,197 in Dreyfus Technology Growth on June 11, 2025 and sell it today you would earn a total of 852.00 from holding Dreyfus Technology Growth or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Technology Growth vs. Growth Fund Of
Performance |
| Timeline |
| Dreyfus Technology Growth |
| Growth Fund |
Dreyfus Technology and Growth Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Technology and Growth Fund
The main advantage of trading using opposite Dreyfus Technology and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Technology position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.| Dreyfus Technology vs. Prudential Real Estate | Dreyfus Technology vs. Davis Real Estate | Dreyfus Technology vs. Dfa Real Estate | Dreyfus Technology vs. Fidelity Real Estate |
| Growth Fund vs. Dreyfus Technology Growth | Growth Fund vs. Invesco Technology Fund | Growth Fund vs. Fidelity Advisor Technology | Growth Fund vs. Technology Ultrasector Profund |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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