Correlation Between Virtus Emerging and Dreyfus Global
Can any of the company-specific risk be diversified away by investing in both Virtus Emerging 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 Virtus Emerging and Dreyfus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Emerging Markets and Dreyfus Global Emerging, you can compare the effects of market volatilities on Virtus Emerging 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 Virtus Emerging with a short position of Dreyfus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Emerging and Dreyfus Global.
Diversification Opportunities for Virtus Emerging and Dreyfus Global
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virtus and Dreyfus is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Emerging Markets 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 Virtus Emerging 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 Virtus Emerging Markets 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 Virtus Emerging i.e., Virtus Emerging and Dreyfus Global go up and down completely randomly.
Pair Corralation between Virtus Emerging and Dreyfus Global
Assuming the 90 days horizon Virtus Emerging is expected to generate 1.3 times less return on investment than Dreyfus Global. But when comparing it to its historical volatility, Virtus Emerging Markets is 1.14 times less risky than Dreyfus Global. It trades about 0.25 of its potential returns per unit of risk. Dreyfus Global Emerging is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,152 in Dreyfus Global Emerging on April 3, 2025 and sell it today you would earn a total of 101.00 from holding Dreyfus Global Emerging or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Emerging Markets vs. Dreyfus Global Emerging
Performance |
| Timeline |
| Virtus Emerging Markets |
| Dreyfus Global Emerging |
Virtus Emerging and Dreyfus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Emerging and Dreyfus Global
The main advantage of trading using opposite Virtus Emerging and Dreyfus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Emerging 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.| Virtus Emerging vs. Multisector Bond Sma | Virtus Emerging vs. Scout E Bond | Virtus Emerging vs. Ab Bond Inflation | Virtus Emerging vs. Versatile Bond Portfolio |
| Dreyfus Global vs. Intermediate Government Bond | Dreyfus Global vs. American Funds Government | Dreyfus Global vs. Columbia Government Mortgage | Dreyfus Global vs. Elfun Government Money |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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