Correlation Between Dreyfus Strategic and Ab Select
Can any of the company-specific risk be diversified away by investing in both Dreyfus Strategic 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 Strategic and Ab Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Strategic Municipal and Ab Select Equity, you can compare the effects of market volatilities on Dreyfus Strategic 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 Strategic with a short position of Ab Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Strategic and Ab Select.
Diversification Opportunities for Dreyfus Strategic and Ab Select
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dreyfus and AUUIX is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Strategic Municipal and Ab Select Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Select Equity and Dreyfus Strategic 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 Dreyfus Strategic Municipal 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 Equity has no effect on the direction of Dreyfus Strategic i.e., Dreyfus Strategic and Ab Select go up and down completely randomly.
Pair Corralation between Dreyfus Strategic and Ab Select
Assuming the 90 days horizon Dreyfus Strategic Municipal is expected to generate 0.79 times more return on investment than Ab Select. However, Dreyfus Strategic Municipal is 1.26 times less risky than Ab Select. It trades about 0.14 of its potential returns per unit of risk. Ab Select Equity is currently generating about 0.1 per unit of risk. If you would invest 668.00 in Dreyfus Strategic Municipal on August 24, 2024 and sell it today you would earn a total of 13.00 from holding Dreyfus Strategic Municipal or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dreyfus Strategic Municipal vs. Ab Select Equity
Performance |
| Timeline |
| Dreyfus Strategic |
| Ab Select Equity |
Dreyfus Strategic and Ab Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Strategic and Ab Select
The main advantage of trading using opposite Dreyfus Strategic and Ab Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Strategic 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 Strategic vs. Origin Emerging Markets | Dreyfus Strategic vs. Crossmark Steward Equity | Dreyfus Strategic vs. T Rowe Price | Dreyfus Strategic vs. Artisan Emerging Markets |
| Ab Select vs. Nuveen Large Cap | Ab Select vs. Nuveen Large Cap | Ab Select vs. HUMANA INC | Ab Select vs. SCOR PK |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |