Correlation Between Saat Defensive and Dreyfus Global
Can any of the company-specific risk be diversified away by investing in both Saat Defensive and Dreyfus Global 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 Saat Defensive and Dreyfus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Defensive Strategy and Dreyfus Global Emerging, you can compare the effects of market volatilities on Saat Defensive and Dreyfus Global 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 Saat Defensive with a short position of Dreyfus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Defensive and Dreyfus Global.
Diversification Opportunities for Saat Defensive and Dreyfus Global
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saat and Dreyfus is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Saat Defensive Strategy and Dreyfus Global Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Global Emerging and Saat Defensive 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 Saat Defensive Strategy are associated (or correlated) with Dreyfus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Global Emerging has no effect on the direction of Saat Defensive i.e., Saat Defensive and Dreyfus Global go up and down completely randomly.
Pair Corralation between Saat Defensive and Dreyfus Global
Assuming the 90 days horizon Saat Defensive is expected to generate 5.35 times less return on investment than Dreyfus Global. But when comparing it to its historical volatility, Saat Defensive Strategy is 8.34 times less risky than Dreyfus Global. It trades about 0.31 of its potential returns per unit of risk. Dreyfus Global Emerging is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,284 in Dreyfus Global Emerging on July 27, 2025 and sell it today you would earn a total of 251.00 from holding Dreyfus Global Emerging or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Defensive Strategy vs. Dreyfus Global Emerging
Performance |
| Timeline |
| Saat Defensive Strategy |
| Dreyfus Global Emerging |
Saat Defensive and Dreyfus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Defensive and Dreyfus Global
The main advantage of trading using opposite Saat Defensive and Dreyfus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Defensive position performs unexpectedly, Dreyfus Global 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 Global will offset losses from the drop in Dreyfus Global's long position.| Saat Defensive vs. Global Gold Fund | Saat Defensive vs. Gold And Precious | Saat Defensive vs. Franklin Gold Precious | Saat Defensive vs. World Precious Minerals |
| Dreyfus Global vs. Baron Health Care | Dreyfus Global vs. Prudential Health Sciences | Dreyfus Global vs. Tekla Healthcare Investors | Dreyfus Global vs. Alphacentric Lifesci Healthcare |
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 CEOs Directory module to screen CEOs from public companies around the world.
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