Correlation Between AllianceBernstein and United States
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and United States 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 United States 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 United States 12, you can compare the effects of market volatilities on AllianceBernstein and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and United States.
Diversification Opportunities for AllianceBernstein and United States
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AllianceBernstein and United is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and United States 12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States 12 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States 12 has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and United States go up and down completely randomly.
Pair Corralation between AllianceBernstein and United States
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to under-perform the United States. In addition to that, AllianceBernstein is 1.67 times more volatile than United States 12. It trades about -0.02 of its total potential returns per unit of risk. United States 12 is currently generating about 0.13 per unit of volatility. If you would invest 3,958 in United States 12 on January 25, 2024 and sell it today you would earn a total of 92.00 from holding United States 12 or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. United States 12
Performance |
| Timeline |
| AllianceBernstein |
| United States 12 |
AllianceBernstein and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and United States
The main advantage of trading using opposite AllianceBernstein and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| United States vs. HUMANA INC | United States vs. Aquagold International | United States vs. Barloworld Ltd ADR | United States vs. Morningstar Unconstrained Allocation |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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