Correlation Between Small-cap Value and The Dreyfus
Can any of the company-specific risk be diversified away by investing in both Small-cap Value and The Dreyfus 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-cap Value and The Dreyfus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Cap Value Series and The Dreyfus Sustainable, you can compare the effects of market volatilities on Small-cap Value and The Dreyfus 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-cap Value with a short position of The Dreyfus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small-cap Value and The Dreyfus.
Diversification Opportunities for Small-cap Value and The Dreyfus
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SMALL-CAP and The is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Value Series and The Dreyfus Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Dreyfus Sustainable and Small-cap Value 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 Cap Value Series are associated (or correlated) with The Dreyfus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Dreyfus Sustainable has no effect on the direction of Small-cap Value i.e., Small-cap Value and The Dreyfus go up and down completely randomly.
Pair Corralation between Small-cap Value and The Dreyfus
Assuming the 90 days horizon Small Cap Value Series is expected to generate 1.67 times more return on investment than The Dreyfus. However, Small-cap Value is 1.67 times more volatile than The Dreyfus Sustainable. It trades about 0.15 of its potential returns per unit of risk. The Dreyfus Sustainable is currently generating about 0.17 per unit of risk. If you would invest 1,396 in Small Cap Value Series on June 4, 2025 and sell it today you would earn a total of 144.00 from holding Small Cap Value Series or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Small Cap Value Series vs. The Dreyfus Sustainable
Performance |
| Timeline |
| Small Cap Value |
| The Dreyfus Sustainable |
Small-cap Value and The Dreyfus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small-cap Value and The Dreyfus
The main advantage of trading using opposite Small-cap Value and The Dreyfus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small-cap Value position performs unexpectedly, The Dreyfus 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 The Dreyfus will offset losses from the drop in The Dreyfus' long position.| Small-cap Value vs. Oppenheimer Gold Special | Small-cap Value vs. Goldman Sachs Clean | Small-cap Value vs. Great West Goldman Sachs | Small-cap Value vs. Precious Metals And |
| The Dreyfus vs. Blackrock All Cap Energy | The Dreyfus vs. Calvert Global Energy | The Dreyfus vs. Invesco Energy Fund | The Dreyfus vs. Gmo Resources |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |