Correlation Between Dreyfus Short and Hunter Small
Can any of the company-specific risk be diversified away by investing in both Dreyfus Short and Hunter 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 Short and Hunter Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Short Intermediate and Hunter Small Cap, you can compare the effects of market volatilities on Dreyfus Short and Hunter 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 Short with a short position of Hunter Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Short and Hunter Small.
Diversification Opportunities for Dreyfus Short and Hunter Small
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dreyfus and Hunter is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Short Intermediate and Hunter Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunter Small Cap and Dreyfus Short 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 Short Intermediate are associated (or correlated) with Hunter Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunter Small Cap has no effect on the direction of Dreyfus Short i.e., Dreyfus Short and Hunter Small go up and down completely randomly.
Pair Corralation between Dreyfus Short and Hunter Small
Assuming the 90 days horizon Dreyfus Short is expected to generate 20.66 times less return on investment than Hunter Small. But when comparing it to its historical volatility, Dreyfus Short Intermediate is 22.44 times less risky than Hunter Small. It trades about 0.29 of its potential returns per unit of risk. Hunter Small Cap is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,200 in Hunter Small Cap on June 11, 2025 and sell it today you would earn a total of 77.00 from holding Hunter Small Cap or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Short Intermediate vs. Hunter Small Cap
Performance |
| Timeline |
| Dreyfus Short Interm |
| Hunter Small Cap |
Dreyfus Short and Hunter Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Short and Hunter Small
The main advantage of trading using opposite Dreyfus Short and Hunter Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Short position performs unexpectedly, Hunter 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 Hunter Small will offset losses from the drop in Hunter Small's long position.| Dreyfus Short vs. T Rowe Price | Dreyfus Short vs. Janus High Yield Fund | Dreyfus Short vs. Blackrock High Yield | Dreyfus Short vs. Neuberger Berman Income |
| Hunter Small vs. Franklin Federal Limited Term | Hunter Small vs. Blackrock Global Longshort | Hunter Small vs. Lord Abbett Short | Hunter Small vs. Dreyfus Short Intermediate |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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