Correlation Between Ab Select and Dreyfus Large
Can any of the company-specific risk be diversified away by investing in both Ab Select 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 Ab Select and Dreyfus Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Equity and Dreyfus Large Cap, you can compare the effects of market volatilities on Ab Select 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 Ab Select with a short position of Dreyfus Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Dreyfus Large.
Diversification Opportunities for Ab Select and Dreyfus Large
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between AUUIX and Dreyfus is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity 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 Ab Select 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 Select Equity 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 Ab Select i.e., Ab Select and Dreyfus Large go up and down completely randomly.
Pair Corralation between Ab Select and Dreyfus Large
Assuming the 90 days horizon Ab Select Equity is expected to generate 0.52 times more return on investment than Dreyfus Large. However, Ab Select Equity is 1.91 times less risky than Dreyfus Large. It trades about 0.12 of its potential returns per unit of risk. Dreyfus Large Cap is currently generating about -0.01 per unit of risk. If you would invest 1,596 in Ab Select Equity on September 2, 2024 and sell it today you would earn a total of 814.00 from holding Ab Select Equity or generate 51.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Equity vs. Dreyfus Large Cap
Performance |
| Timeline |
| Ab Select Equity |
| Dreyfus Large Cap |
Ab Select and Dreyfus Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Dreyfus Large
The main advantage of trading using opposite Ab Select and Dreyfus Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select 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.| Ab Select vs. Oppenheimer International Diversified | Ab Select vs. Tax Managed Mid Small | Ab Select vs. Davenport Small Cap | Ab Select vs. Small Cap Stock |
| Dreyfus Large vs. Marsico Focus Fund | Dreyfus Large vs. Dreyfus Sp 500 | Dreyfus Large vs. Dreyfus Institutional Sp | Dreyfus Large vs. Causeway International Value |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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