I want to test for an association between socioeconomic deprivation and death rates. My data are raw death counts and deprivation ranks for a set of small geographic areas. Some areas have very low death counts. This will lead to high standard errors (SE) in those areas when I apply indirect age- and sex- standardisation (to generate standardised mortality ratios; SMR).
My question: If I have a sufficiently large number of areas is it valid to calculate a bivariate correlation coefficient despite the high SE in some areas? Essentially, am I able to assume the distribution of errors in the calculated SMRs tends to zero?
I've seen this done for directly standardised proportions at similar geographic scales (e.g. supp table 1 in https://www.sciencedirect.com/science/article/pii/S1353829216300156) but nor for SMRs. And I hope to understand the underlying reasons/for against using this method.
EDIT: Deprivation is represented here as an ordinal variable: ranks from 1 to N, where N ~6000.