Correlation Between AllianceBernstein and Equity One
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Equity One 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 Equity One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AllianceBernstein Holding LP and Equity One, you can compare the effects of market volatilities on AllianceBernstein and Equity One 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 Equity One. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Equity One.
Diversification Opportunities for AllianceBernstein and Equity One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AllianceBernstein and Equity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Equity One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity One 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 Holding LP are associated (or correlated) with Equity One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity One has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Equity One go up and down completely randomly.
Pair Corralation between AllianceBernstein and Equity One
If you would invest 3,382 in AllianceBernstein Holding LP on January 17, 2024 and sell it today you would lose (135.00) from holding AllianceBernstein Holding LP or give up 3.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. Equity One
Performance |
| Timeline |
| AllianceBernstein |
| Equity One |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AllianceBernstein and Equity One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Equity One
The main advantage of trading using opposite AllianceBernstein and Equity One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Equity One 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 Equity One will offset losses from the drop in Equity One's long position.The idea behind AllianceBernstein Holding LP and Equity One pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Equity One vs. Merit Medical Systems | Equity One vs. Unilever PLC ADR | Equity One vs. Pinterest | Equity One vs. JBG SMITH Properties |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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