Correlation Between AllianceBernstein and AGM Group
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and AGM Group 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 AGM Group 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 AGM Group Holdings, you can compare the effects of market volatilities on AllianceBernstein and AGM Group 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 AGM Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and AGM Group.
Diversification Opportunities for AllianceBernstein and AGM Group
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AllianceBernstein and AGM is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and AGM Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGM Group Holdings 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 AGM Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGM Group Holdings has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and AGM Group go up and down completely randomly.
Pair Corralation between AllianceBernstein and AGM Group
Allowing for the 90-day total investment horizon AllianceBernstein is expected to generate 1.96 times less return on investment than AGM Group. But when comparing it to its historical volatility, AllianceBernstein Holding LP is 4.51 times less risky than AGM Group. It trades about 0.09 of its potential returns per unit of risk. AGM Group Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 154.00 in AGM Group Holdings on August 27, 2024 and sell it today you would earn a total of 19.00 from holding AGM Group Holdings or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. AGM Group Holdings
Performance |
| Timeline |
| AllianceBernstein |
| AGM Group Holdings |
AllianceBernstein and AGM Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and AGM Group
The main advantage of trading using opposite AllianceBernstein and AGM Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, AGM Group 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 AGM Group will offset losses from the drop in AGM Group's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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