Correlation Between Alliancebernstein and Dreyfus Strategic
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Dreyfus Strategic 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 Alliancebernstein and Dreyfus Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein Global High and Dreyfus Strategic Value, you can compare the effects of market volatilities on Alliancebernstein and Dreyfus Strategic 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 Alliancebernstein with a short position of Dreyfus Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Dreyfus Strategic.
Diversification Opportunities for Alliancebernstein and Dreyfus Strategic
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Alliancebernstein and Dreyfus is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Dreyfus Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Strategic Value and Alliancebernstein 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 Alliancebernstein Global High are associated (or correlated) with Dreyfus Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Strategic Value has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Dreyfus Strategic go up and down completely randomly.
Pair Corralation between Alliancebernstein and Dreyfus Strategic
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 0.26 times more return on investment than Dreyfus Strategic. However, Alliancebernstein Global High is 3.88 times less risky than Dreyfus Strategic. It trades about -0.16 of its potential returns per unit of risk. Dreyfus Strategic Value is currently generating about -0.37 per unit of risk. If you would invest 1,082 in Alliancebernstein Global High on September 27, 2024 and sell it today you would lose (16.00) from holding Alliancebernstein Global High or give up 1.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Alliancebernstein Global High vs. Dreyfus Strategic Value
Performance |
Timeline |
Alliancebernstein |
Dreyfus Strategic Value |
Alliancebernstein and Dreyfus Strategic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alliancebernstein and Dreyfus Strategic
The main advantage of trading using opposite Alliancebernstein and Dreyfus Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Dreyfus Strategic 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 Strategic will offset losses from the drop in Dreyfus Strategic's long position.Alliancebernstein vs. Doubleline Yield Opportunities | Alliancebernstein vs. Highland Floating Rate | Alliancebernstein vs. Doubleline Opportunistic Credit | Alliancebernstein vs. Western Asset Emerging |
Dreyfus Strategic vs. Dreyfusstandish Global Fixed | Dreyfus Strategic vs. Dreyfusstandish Global Fixed | Dreyfus Strategic vs. Dreyfus High Yield | Dreyfus Strategic 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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