Correlation Between Ab Select and Dreyfus Short
Can any of the company-specific risk be diversified away by investing in both Ab Select and Dreyfus Short 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 Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Longshort and Dreyfus Short Intermediate, you can compare the effects of market volatilities on Ab Select and Dreyfus Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Dreyfus Short.
Diversification Opportunities for Ab Select and Dreyfus Short
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ASCLX and Dreyfus is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Longshort and Dreyfus Short Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Short Interm 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 Longshort are associated (or correlated) with Dreyfus Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Short Interm has no effect on the direction of Ab Select i.e., Ab Select and Dreyfus Short go up and down completely randomly.
Pair Corralation between Ab Select and Dreyfus Short
Assuming the 90 days horizon Ab Select Longshort is expected to generate 6.04 times more return on investment than Dreyfus Short. However, Ab Select is 6.04 times more volatile than Dreyfus Short Intermediate. It trades about 0.25 of its potential returns per unit of risk. Dreyfus Short Intermediate is currently generating about 0.47 per unit of risk. If you would invest 1,293 in Ab Select Longshort on June 2, 2025 and sell it today you would earn a total of 69.00 from holding Ab Select Longshort or generate 5.34% 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 Longshort vs. Dreyfus Short Intermediate
Performance |
| Timeline |
| Ab Select Longshort |
| Dreyfus Short Interm |
Ab Select and Dreyfus Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Dreyfus Short
The main advantage of trading using opposite Ab Select and Dreyfus Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Dreyfus Short 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 Short will offset losses from the drop in Dreyfus Short's long position.| Ab Select vs. Ab Global E | Ab Select vs. Ab Global E | Ab Select vs. Ab Global E | Ab Select vs. Ab All Market |
| Dreyfus Short vs. Dreyfusstandish Global Fixed | Dreyfus Short vs. Dreyfusstandish Global Fixed | Dreyfus Short vs. Dreyfus High Yield | Dreyfus Short vs. Dreyfus High Yield |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |