Correlation Between Ab Value and Dreyfus Strategic
Can any of the company-specific risk be diversified away by investing in both Ab Value and Dreyfus Strategic 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 Ab Value and Dreyfus Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Value Fund and Dreyfus Strategic Municipal, you can compare the effects of market volatilities on Ab Value and Dreyfus Strategic 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 Ab Value with a short position of Dreyfus Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Value and Dreyfus Strategic.
Diversification Opportunities for Ab Value and Dreyfus Strategic
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABVCX and Dreyfus is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ab Value Fund and Dreyfus Strategic Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Strategic and Ab Value 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 Ab Value Fund are associated (or correlated) with Dreyfus Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Strategic has no effect on the direction of Ab Value i.e., Ab Value and Dreyfus Strategic go up and down completely randomly.
Pair Corralation between Ab Value and Dreyfus Strategic
Assuming the 90 days horizon Ab Value Fund is expected to under-perform the Dreyfus Strategic. In addition to that, Ab Value is 2.27 times more volatile than Dreyfus Strategic Municipal. It trades about -0.03 of its total potential returns per unit of risk. Dreyfus Strategic Municipal is currently generating about 0.32 per unit of volatility. If you would invest 679.00 in Dreyfus Strategic Municipal on September 14, 2024 and sell it today you would earn a total of 11.00 from holding Dreyfus Strategic Municipal or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Value Fund vs. Dreyfus Strategic Municipal
Performance |
| Timeline |
| Ab Value Fund |
| Dreyfus Strategic |
Ab Value and Dreyfus Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Value and Dreyfus Strategic
The main advantage of trading using opposite Ab Value and Dreyfus Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Value position performs unexpectedly, Dreyfus Strategic 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 Strategic will offset losses from the drop in Dreyfus Strategic's long position.| Ab Value vs. Putnam Convertible Incm Gwth | Ab Value vs. Fidelity Sai Convertible | Ab Value vs. Calamos Dynamic Convertible | Ab Value vs. Advent Claymore Convertible |
| Dreyfus Strategic vs. Blackrock High Yield | Dreyfus Strategic vs. Strategic Advisers Income | Dreyfus Strategic vs. Payden High Income | Dreyfus Strategic vs. Voya High Yield |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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