Correlation Between Dreyfus International and Aberdeen Small
Can any of the company-specific risk be diversified away by investing in both Dreyfus International and Aberdeen Small 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 International and Aberdeen Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus International Stock and Aberdeen Small Cap, you can compare the effects of market volatilities on Dreyfus International and Aberdeen Small 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 International with a short position of Aberdeen Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus International and Aberdeen Small.
Diversification Opportunities for Dreyfus International and Aberdeen Small
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dreyfus and Aberdeen is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus International Stock and Aberdeen Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Small Cap and Dreyfus International 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 International Stock are associated (or correlated) with Aberdeen Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Small Cap has no effect on the direction of Dreyfus International i.e., Dreyfus International and Aberdeen Small go up and down completely randomly.
Pair Corralation between Dreyfus International and Aberdeen Small
Assuming the 90 days horizon Dreyfus International Stock is expected to generate 0.64 times more return on investment than Aberdeen Small. However, Dreyfus International Stock is 1.55 times less risky than Aberdeen Small. It trades about 0.11 of its potential returns per unit of risk. Aberdeen Small Cap is currently generating about 0.04 per unit of risk. If you would invest 2,314 in Dreyfus International Stock on September 1, 2025 and sell it today you would earn a total of 116.00 from holding Dreyfus International Stock or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus International Stock vs. Aberdeen Small Cap
Performance |
| Timeline |
| Dreyfus International |
| Aberdeen Small Cap |
Dreyfus International and Aberdeen Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus International and Aberdeen Small
The main advantage of trading using opposite Dreyfus International and Aberdeen Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus International position performs unexpectedly, Aberdeen Small 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 Aberdeen Small will offset losses from the drop in Aberdeen Small's long position.| Dreyfus International vs. Invesco Real Estate | Dreyfus International vs. Nuveen Real Estate | Dreyfus International vs. Aew Real Estate | Dreyfus International vs. Redwood Real Estate |
| Aberdeen Small vs. Federated Government Income | Aberdeen Small vs. Ridgeworth Seix Government | Aberdeen Small vs. Intermediate Government Bond | Aberdeen Small vs. Fidelity Series Government |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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