Correlation Between AllianceBernstein and National Storage
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and National Storage 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 National Storage 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 National Storage Affiliates, you can compare the effects of market volatilities on AllianceBernstein and National Storage 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 National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and National Storage.
Diversification Opportunities for AllianceBernstein and National Storage
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AllianceBernstein and National is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and National Storage Affiliates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage Aff 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 National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage Aff has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and National Storage go up and down completely randomly.
Pair Corralation between AllianceBernstein and National Storage
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 0.92 times more return on investment than National Storage. However, AllianceBernstein Holding LP is 1.09 times less risky than National Storage. It trades about 0.0 of its potential returns per unit of risk. National Storage Affiliates is currently generating about -0.02 per unit of risk. If you would invest 3,523 in AllianceBernstein Holding LP on January 25, 2024 and sell it today you would lose (173.00) from holding AllianceBernstein Holding LP or give up 4.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. National Storage Affiliates
Performance |
| Timeline |
| AllianceBernstein |
| National Storage Aff |
AllianceBernstein and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and National Storage
The main advantage of trading using opposite AllianceBernstein and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, National Storage 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 National Storage will offset losses from the drop in National Storage's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| National Storage vs. Extra Space Storage | National Storage vs. Americold Realty Trust | National Storage vs. Public Storage | National Storage vs. Terreno Realty |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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