Correlation Between AllianceBernstein and Athene Holding
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Athene Holding 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 Athene Holding 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 Athene Holding, you can compare the effects of market volatilities on AllianceBernstein and Athene Holding 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 Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Athene Holding.
Diversification Opportunities for AllianceBernstein and Athene Holding
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AllianceBernstein and Athene is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding 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 Athene Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athene Holding has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Athene Holding go up and down completely randomly.
Pair Corralation between AllianceBernstein and Athene Holding
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 4.2 times more return on investment than Athene Holding. However, AllianceBernstein is 4.2 times more volatile than Athene Holding. It trades about 0.09 of its potential returns per unit of risk. Athene Holding is currently generating about 0.1 per unit of risk. If you would invest 3,421 in AllianceBernstein Holding LP on August 24, 2024 and sell it today you would earn a total of 251.00 from holding AllianceBernstein Holding LP or generate 7.34% 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. Athene Holding
Performance |
| Timeline |
| AllianceBernstein |
| Athene Holding |
AllianceBernstein and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Athene Holding
The main advantage of trading using opposite AllianceBernstein and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Athene Holding 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 Athene Holding will offset losses from the drop in Athene Holding's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Argo Group International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |