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The following is a list of oversold stocks, as defined by the Relative Strength, or RSI(14), indicator. All of the stocks mentioned below have RSI(14) readings below 40, which usually signal oversold conditions.

In addition, all of these companies have seen a significant drop in their short float between Aug. 13 and Nov. 15.

To compile this list, we started with a universe of stocks with RSI(14) readings below 40. We then narrowed down the list by only focusing on stocks that have seen a significant drop in their short float for the past three months.

Short sellers seem to think most of the downside has already been priced into these stocks - what do you think?

RSI(14) values sourced from Finviz, short trends data sourced from AOL Money.

Click for expanded images

The list has been sorted by the decrease in short interest. A reminder: All short trends described occurred between 8/13 and 11/15.

1. AllianceBernstein Holding L.P. (AB): Asset Management Industry. Market cap of $2.38B. RSI(14) at 36.14. Shorted shares have decreased from 1.41M to 346K (-75% decrease). Short float at 0.34%, which implies a short ratio of 0.88 days. The stock has lost -3.48% over the last year.

2. Constellation Energy Group, Inc. (CEG): Electric Utilities Industry. Market cap of $5.77B. RSI(14) at 36.0. Shorted shares have decreased from 6.21M to 1.59M (-74% decrease). Short float at 0.85%, which implies a short ratio of 0.67 days. The stock has lost -8.47% over the last year.

3. Assurant Inc. (AIZ): Accident and Health Insurance Industry. Market cap of $3.76B. RSI(14) at 35.77. Shorted shares have decreased from 2.34M to 1M (-57% decrease). Short float at 0.95%, which implies a short ratio of 0.79 days. The stock has gained 18.85% over the last year.

4. W. P. Carey & Co. LLC (WPC): Property Management Industry. Market cap of $1.17B. RSI(14) at 35.72. Shorted shares have decreased from 49K to 25K (-49% decrease). Short float at 0.09%, which implies a short ratio of 0.36 days. The stock has gained 23.11% over the last year.

5. Jones Apparel Group, Inc. (JNY): Apparel Stores Industry. Market cap of $1.18B. RSI(14) at 32.32. Shorted shares have decreased from 6.94M to 3.56M (-49% decrease). Short float at 4.15%, which implies a short ratio of 1.79 days. The stock has lost -20.49% over the last year.

6. PS Business Parks Inc. (PSB): REIT. Market cap of $1.3B. RSI(14) at 31.15. Shorted shares have decreased from 1.07M to 570K (-47% decrease). Short float at 3.07%, which implies a short ratio of 5.64 days. The stock has gained 10.74% over the last year.

7. Eagle Bulk Shipping, Inc. (EGLE): Shipping Industry. Market cap of $312.07M. RSI(14) at 36.97. Shorted shares have decreased from 9.48M to 5.09M (-46% decrease). Short float at 8.24%, which implies a short ratio of 3.65 days. The stock has lost -7.22% over the last year.

8. Kennedy Wilson Holdings Inc. (KW): Property Management Industry. Market cap of $398.97M. RSI(14) at 34.12. Shorted shares have decreased from 1.07M to 657K (-39% decrease). Short float at 2.88%, which implies a short ratio of 8.57 days. The stock has gained 8.79% over the last year.

9. Tutor Perini Corporation (TPC): Heavy Construction Industry. Market cap of $900.36M. RSI(14) at 30.3. Shorted shares have decreased from 2.11M to 1.3M (-38% decrease). Short float at 4.85%, which implies a short ratio of 3.54 days. The stock has gained 18.83% over the last year.

10. CNA Financial Corporation (CNA): Property and Casualty Insurance Industry. Market cap of $6.97B. RSI(14) at 35.77. Shorted shares have decreased from 1.92M to 1.24M (-35% decrease). Short float at 0.54%, which implies a short ratio of 7.02 days. The stock has gained 13.05% over the last year.

11. Equity LifeStyle Properties, Inc. (ELS): REIT. Market cap of $1.67B. RSI(14) at 37.32. Shorted shares have decreased from 1.95M to 1.29M (-34% decrease). Short float at 4.29%, which implies a short ratio of 6.62 days. The stock has gained 19.69% over the last year.

12. Nicor Inc. (GAS): Gas Utilities Industry. Market cap of $1.99B. RSI(14) at 31.13. Shorted shares have decreased from 3.14M to 2.11M (-33% decrease). Short float at 4.69%, which implies a short ratio of 5.24 days. The stock has gained 16.52% over the last year.

13. Tellabs Inc. (TLAB): Communication Equipment Industry. Market cap of $2.35B. RSI(14) at 31.64. Shorted shares have decreased from 25.59M to 17.75M (-31% decrease). Short float at 5.32%, which implies a short ratio of 2.54 days. The stock has gained 14.59% over the last year.

14. Northwest Bancshares, Inc. (NWBI): Savings and Loans Industry. Market cap of $1.16B. RSI(14) at 32.06. Shorted shares have decreased from 4M to 2.88M (-28% decrease). Short float at 7.15%, which implies a short ratio of 4.38 days. The stock has gained 5.64% over the last year.

15. The AES Corporation (AES): Electric Utilities Industry. Market cap of $8.56B. RSI(14) at 29.62. Shorted shares have decreased from 8.28M to 5.99M (-28% decrease). Short float at 0.76%, which implies a short ratio of 1.27 days. The stock has lost -15.02% over the last year.

Disclosure: No positions.

Source: 15 Oversold Stocks with a Decreasing Short Float