Correlation Between Dreyfus Technology and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both Dreyfus Technology and Federated Strategic 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 Federated Strategic 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 Federated Strategic Income, you can compare the effects of market volatilities on Dreyfus Technology and Federated Strategic 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 Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Technology and Federated Strategic.
Diversification Opportunities for Dreyfus Technology and Federated Strategic
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dreyfus and Federated is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Technology Growth and Federated Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic 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 Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic has no effect on the direction of Dreyfus Technology i.e., Dreyfus Technology and Federated Strategic go up and down completely randomly.
Pair Corralation between Dreyfus Technology and Federated Strategic
Assuming the 90 days horizon Dreyfus Technology Growth is expected to generate 5.72 times more return on investment than Federated Strategic. However, Dreyfus Technology is 5.72 times more volatile than Federated Strategic Income. It trades about 0.22 of its potential returns per unit of risk. Federated Strategic Income is currently generating about 0.35 per unit of risk. If you would invest 8,145 in Dreyfus Technology Growth on June 13, 2025 and sell it today you would earn a total of 1,068 from holding Dreyfus Technology Growth or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Technology Growth vs. Federated Strategic Income
Performance |
| Timeline |
| Dreyfus Technology Growth |
| Federated Strategic |
Dreyfus Technology and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Technology and Federated Strategic
The main advantage of trading using opposite Dreyfus Technology and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Technology position performs unexpectedly, Federated Strategic 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 Federated Strategic will offset losses from the drop in Federated Strategic's long position.| Dreyfus Technology vs. Red Oak Technology | Dreyfus Technology vs. Firsthand Technology Opportunities | Dreyfus Technology vs. Goldman Sachs Technology | Dreyfus Technology vs. Putnam Global Technology |
| Federated Strategic vs. Franklin Gold Precious | Federated Strategic vs. Europac Gold Fund | Federated Strategic vs. World Precious Minerals | Federated Strategic vs. Fidelity Advisor Gold |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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