Correlation Between Small Company and Dreyfus Active
Can any of the company-specific risk be diversified away by investing in both Small Company and Dreyfus Active 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 Small Company and Dreyfus Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Pany Growth and Dreyfus Active Midcap, you can compare the effects of market volatilities on Small Company and Dreyfus Active 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 Small Company with a short position of Dreyfus Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small Company and Dreyfus Active.
Diversification Opportunities for Small Company and Dreyfus Active
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Small and DREYFUS is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Small Pany Growth and Dreyfus Active Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Active Midcap and Small Company 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 Small Pany Growth are associated (or correlated) with Dreyfus Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Active Midcap has no effect on the direction of Small Company i.e., Small Company and Dreyfus Active go up and down completely randomly.
Pair Corralation between Small Company and Dreyfus Active
Assuming the 90 days horizon Small Pany Growth is expected to generate 2.14 times more return on investment than Dreyfus Active. However, Small Company is 2.14 times more volatile than Dreyfus Active Midcap. It trades about 0.06 of its potential returns per unit of risk. Dreyfus Active Midcap is currently generating about 0.05 per unit of risk. If you would invest 888.00 in Small Pany Growth on November 29, 2024 and sell it today you would earn a total of 596.00 from holding Small Pany Growth or generate 67.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Small Pany Growth vs. Dreyfus Active Midcap
Performance |
| Timeline |
| Small Pany Growth |
| Dreyfus Active Midcap |
Small Company and Dreyfus Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small Company and Dreyfus Active
The main advantage of trading using opposite Small Company and Dreyfus Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small Company position performs unexpectedly, Dreyfus Active 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 Active will offset losses from the drop in Dreyfus Active's long position.| Small Company vs. Mid Cap Growth | Small Company vs. Growth Portfolio Class | Small Company vs. Morgan Stanley Multi | Small Company vs. Emerging Markets Portfolio |
| Dreyfus Active vs. Virtus Artificial Intelligence | Dreyfus Active vs. Pgim Jennison Technology | Dreyfus Active vs. Technology Ultrasector Profund | Dreyfus Active vs. Vanguard Information Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |