Correlation Between Cibc Atlas and Dreyfus Large

Can any of the company-specific risk be diversified away by investing in both Cibc Atlas and Dreyfus Large 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 Cibc Atlas and Dreyfus Large into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cibc Atlas International and Dreyfus Large Cap, you can compare the effects of market volatilities on Cibc Atlas and Dreyfus Large 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 Cibc Atlas with a short position of Dreyfus Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cibc Atlas and Dreyfus Large.

Diversification Opportunities for Cibc Atlas and Dreyfus Large

0.89

Correlation Coefficient

Cibc Atlas  Dreyfus Large

Very poor diversification

The 3 months correlation between Cibc and Dreyfus is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Cibc Atlas International and Dreyfus Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Large Cap and Cibc Atlas 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 Cibc Atlas International are associated (or correlated) with Dreyfus Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Large Cap has no effect on the direction of Cibc Atlas i.e., Cibc Atlas and Dreyfus Large go up and down completely randomly.

Pair Corralation between Cibc Atlas and Dreyfus Large

Assuming the 90 days horizon Cibc Atlas is expected to generate 2.51 times less return on investment than Dreyfus Large. In addition to that, Cibc Atlas is 1.0 times more volatile than Dreyfus Large Cap. It trades about 0.12 of its total potential returns per unit of risk. Dreyfus Large Cap is currently generating about 0.31 per unit of volatility. If you would invest  1,421  in Dreyfus Large Cap on May 2, 2025 and sell it today you would earn a total of  206.00  from holding Dreyfus Large Cap or generate 14.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Cibc Atlas International  vs.  Dreyfus Large Cap

Cibc Atlas International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cibc Atlas International are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Cibc Atlas is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dreyfus Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dreyfus Large Cap are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Dreyfus Large showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cibc Atlas and Dreyfus Large

The main advantage of trading using opposite Cibc Atlas and Dreyfus Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cibc Atlas position performs unexpectedly, Dreyfus Large 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 Large will offset losses from the drop in Dreyfus Large's long position.

The idea behind Cibc Atlas International and Dreyfus Large Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.