Correlation Between AllianceBernstein and Associated Capital
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Associated Capital 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 Associated Capital 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 Associated Capital Group, you can compare the effects of market volatilities on AllianceBernstein and Associated Capital 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 Associated Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Associated Capital.
Diversification Opportunities for AllianceBernstein and Associated Capital
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AllianceBernstein and Associated is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Associated Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Capital 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 Associated Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Capital has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Associated Capital go up and down completely randomly.
Pair Corralation between AllianceBernstein and Associated Capital
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 0.95 times more return on investment than Associated Capital. However, AllianceBernstein Holding LP is 1.06 times less risky than Associated Capital. It trades about 0.03 of its potential returns per unit of risk. Associated Capital Group is currently generating about 0.0 per unit of risk. If you would invest 3,040 in AllianceBernstein Holding LP on August 26, 2024 and sell it today you would earn a total of 518.00 from holding AllianceBernstein Holding LP or generate 17.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. Associated Capital Group
Performance |
| Timeline |
| AllianceBernstein |
| Associated Capital |
AllianceBernstein and Associated Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Associated Capital
The main advantage of trading using opposite AllianceBernstein and Associated Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Associated Capital 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 Associated Capital will offset losses from the drop in Associated Capital's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| Associated Capital vs. Abrdn Emerging Markets | Associated Capital vs. DWS Municipal Income | Associated Capital vs. Blackrock Muni Intermediate | Associated Capital vs. Blackrock Muniyield |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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