Correlation Between Abbey Capital and Dreyfus Municipal
Can any of the company-specific risk be diversified away by investing in both Abbey Capital and Dreyfus Municipal 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 Abbey Capital and Dreyfus Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abbey Capital Futures and Dreyfus Municipal Bond, you can compare the effects of market volatilities on Abbey Capital and Dreyfus Municipal 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 Abbey Capital with a short position of Dreyfus Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abbey Capital and Dreyfus Municipal.
Diversification Opportunities for Abbey Capital and Dreyfus Municipal
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Abbey and Dreyfus is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Abbey Capital Futures and Dreyfus Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Municipal Bond and Abbey Capital 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 Abbey Capital Futures are associated (or correlated) with Dreyfus Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Municipal Bond has no effect on the direction of Abbey Capital i.e., Abbey Capital and Dreyfus Municipal go up and down completely randomly.
Pair Corralation between Abbey Capital and Dreyfus Municipal
Assuming the 90 days horizon Abbey Capital Futures is expected to generate 1.09 times more return on investment than Dreyfus Municipal. However, Abbey Capital is 1.09 times more volatile than Dreyfus Municipal Bond. It trades about 0.02 of its potential returns per unit of risk. Dreyfus Municipal Bond is currently generating about -0.06 per unit of risk. If you would invest 1,104 in Abbey Capital Futures on November 4, 2024 and sell it today you would earn a total of 2.00 from holding Abbey Capital Futures or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abbey Capital Futures vs. Dreyfus Municipal Bond
Performance |
| Timeline |
| Abbey Capital Futures |
| Dreyfus Municipal Bond |
Abbey Capital and Dreyfus Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abbey Capital and Dreyfus Municipal
The main advantage of trading using opposite Abbey Capital and Dreyfus Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abbey Capital position performs unexpectedly, Dreyfus Municipal 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 Municipal will offset losses from the drop in Dreyfus Municipal's long position.| Abbey Capital vs. Artisan High Income | Abbey Capital vs. Lord Abbett Short | Abbey Capital vs. City National Rochdale | Abbey Capital vs. Virtus High Yield |
| Dreyfus Municipal vs. Morgan Stanley Emerging | Dreyfus Municipal vs. Dodge Cox Emerging | Dreyfus Municipal vs. Eagle Mlp Strategy | Dreyfus Municipal vs. Nasdaq 100 2x Strategy |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |