Correlation Between Ab Value and Dreyfus Balanced
Can any of the company-specific risk be diversified away by investing in both Ab Value and Dreyfus Balanced 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 Balanced 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 Balanced Opportunity, you can compare the effects of market volatilities on Ab Value and Dreyfus Balanced 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 Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Value and Dreyfus Balanced.
Diversification Opportunities for Ab Value and Dreyfus Balanced
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ABVCX and Dreyfus is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ab Value Fund and Dreyfus Balanced Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Balanced Opp 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 Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Balanced Opp has no effect on the direction of Ab Value i.e., Ab Value and Dreyfus Balanced go up and down completely randomly.
Pair Corralation between Ab Value and Dreyfus Balanced
Assuming the 90 days horizon Ab Value Fund is expected to generate 1.36 times more return on investment than Dreyfus Balanced. However, Ab Value is 1.36 times more volatile than Dreyfus Balanced Opportunity. It trades about 0.2 of its potential returns per unit of risk. Dreyfus Balanced Opportunity is currently generating about 0.21 per unit of risk. If you would invest 1,750 in Ab Value Fund on June 12, 2025 and sell it today you would earn a total of 128.00 from holding Ab Value Fund or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Value Fund vs. Dreyfus Balanced Opportunity
Performance |
| Timeline |
| Ab Value Fund |
| Dreyfus Balanced Opp |
Ab Value and Dreyfus Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Value and Dreyfus Balanced
The main advantage of trading using opposite Ab Value and Dreyfus Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Value position performs unexpectedly, Dreyfus Balanced 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 Balanced will offset losses from the drop in Dreyfus Balanced's long position.| Ab Value vs. Invesco Global Health | Ab Value vs. Highland Longshort Healthcare | Ab Value vs. Putnam Global Health | Ab Value vs. Hartford Healthcare Hls |
| Dreyfus Balanced vs. International Investors Gold | Dreyfus Balanced vs. Gabelli Gold Fund | Dreyfus Balanced vs. James Balanced Golden | Dreyfus Balanced vs. First Eagle Gold |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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