Correlation Between Dreyfus/standish and Ab Select
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Ab Select 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/standish and Ab Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfusstandish Global Fixed and Ab Select Longshort, you can compare the effects of market volatilities on Dreyfus/standish and Ab Select 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/standish with a short position of Ab Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Ab Select.
Diversification Opportunities for Dreyfus/standish and Ab Select
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dreyfus/standish and ASLKX is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Ab Select Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Select Longshort and Dreyfus/standish 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 Dreyfusstandish Global Fixed are associated (or correlated) with Ab Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Select Longshort has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Ab Select go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Ab Select
Assuming the 90 days horizon Dreyfus/standish is expected to generate 2.03 times less return on investment than Ab Select. But when comparing it to its historical volatility, Dreyfusstandish Global Fixed is 1.6 times less risky than Ab Select. It trades about 0.11 of its potential returns per unit of risk. Ab Select Longshort is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,260 in Ab Select Longshort on August 26, 2024 and sell it today you would earn a total of 167.00 from holding Ab Select Longshort or generate 13.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.26% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Ab Select Longshort
Performance |
| Timeline |
| Dreyfusstandish Global |
| Ab Select Longshort |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dreyfus/standish and Ab Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Ab Select
The main advantage of trading using opposite Dreyfus/standish and Ab Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Ab Select 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 Ab Select will offset losses from the drop in Ab Select's long position.| Dreyfus/standish vs. Dreyfus High Yield | Dreyfus/standish vs. Dreyfus International Bond | Dreyfus/standish vs. Dreyfus International Bond | Dreyfus/standish vs. Dreyfus International Equity |
| Ab Select vs. Ultra Short Term Fixed | Ab Select vs. Dreyfusstandish Global Fixed | Ab Select vs. Ab Select Equity | Ab Select vs. The Hartford Equity |
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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