Correlation Between Valic Company and Dreyfus Natural
Can any of the company-specific risk be diversified away by investing in both Valic Company and Dreyfus Natural 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 Valic Company and Dreyfus Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Dreyfus Natural Resources, you can compare the effects of market volatilities on Valic Company and Dreyfus Natural 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 Valic Company with a short position of Dreyfus Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Dreyfus Natural.
Diversification Opportunities for Valic Company and Dreyfus Natural
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Valic and Dreyfus is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Dreyfus Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Natural Resources and Valic Company 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 Valic Company I are associated (or correlated) with Dreyfus Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Natural Resources has no effect on the direction of Valic Company i.e., Valic Company and Dreyfus Natural go up and down completely randomly.
Pair Corralation between Valic Company and Dreyfus Natural
Assuming the 90 days horizon Valic Company is expected to generate 2.25 times less return on investment than Dreyfus Natural. But when comparing it to its historical volatility, Valic Company I is 2.89 times less risky than Dreyfus Natural. It trades about 0.08 of its potential returns per unit of risk. Dreyfus Natural Resources is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,410 in Dreyfus Natural Resources on September 11, 2025 and sell it today you would earn a total of 197.00 from holding Dreyfus Natural Resources or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Dreyfus Natural Resources
Performance |
| Timeline |
| Valic Company I |
| Dreyfus Natural Resources |
Valic Company and Dreyfus Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Dreyfus Natural
The main advantage of trading using opposite Valic Company and Dreyfus Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Dreyfus Natural 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 Natural will offset losses from the drop in Dreyfus Natural's long position.| Valic Company vs. Metropolitan West Unconstrained | Valic Company vs. Alliancebernstein National Municipalome | Valic Company vs. Doubleline Total Return | Valic Company vs. Siit Emerging Markets |
| Dreyfus Natural vs. Blackrock Glbl Dyn | Dreyfus Natural vs. Blackrock Glbl Dyn | Dreyfus Natural vs. Eaton Vance Tax Managed | Dreyfus Natural vs. Putnam Emerging Markets |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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