Correlation Between Dreyfus Global and Catalyst/map Global

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Can any of the company-specific risk be diversified away by investing in both Dreyfus Global and Catalyst/map 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 Dreyfus Global and Catalyst/map Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Global Emerging and Catalystmap Global Balanced, you can compare the effects of market volatilities on Dreyfus Global and Catalyst/map 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 Dreyfus Global with a short position of Catalyst/map Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Global and Catalyst/map Global.

Diversification Opportunities for Dreyfus Global and Catalyst/map Global

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Dreyfus and Catalyst/map is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Global Emerging and Catalystmap Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/map Global and Dreyfus Global 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 Dreyfus Global Emerging are associated (or correlated) with Catalyst/map Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/map Global has no effect on the direction of Dreyfus Global i.e., Dreyfus Global and Catalyst/map Global go up and down completely randomly.

Pair Corralation between Dreyfus Global and Catalyst/map Global

Assuming the 90 days horizon Dreyfus Global Emerging is expected to generate 1.98 times more return on investment than Catalyst/map Global. However, Dreyfus Global is 1.98 times more volatile than Catalystmap Global Balanced. It trades about 0.33 of its potential returns per unit of risk. Catalystmap Global Balanced is currently generating about 0.21 per unit of risk. If you would invest  2,228  in Dreyfus Global Emerging on July 12, 2025 and sell it today you would earn a total of  318.00  from holding Dreyfus Global Emerging or generate 14.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Dreyfus Global Emerging  vs.  Catalystmap Global Balanced

 Performance 
       Timeline  
Dreyfus Global Emerging 

Risk-Adjusted Performance

Strong

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Dreyfus Global Emerging are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Dreyfus Global showed solid returns over the last few months and may actually be approaching a breakup point.
Catalyst/map Global 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Catalystmap Global Balanced are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Catalyst/map Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dreyfus Global and Catalyst/map Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dreyfus Global and Catalyst/map Global

The main advantage of trading using opposite Dreyfus Global and Catalyst/map Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Global position performs unexpectedly, Catalyst/map 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 Catalyst/map Global will offset losses from the drop in Catalyst/map Global's long position.
The idea behind Dreyfus Global Emerging and Catalystmap Global Balanced 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.
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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