Correlation Between AllianceBernstein and BTCS
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and BTCS 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 BTCS 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 BTCS Inc, you can compare the effects of market volatilities on AllianceBernstein and BTCS 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 BTCS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and BTCS.
Diversification Opportunities for AllianceBernstein and BTCS
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AllianceBernstein and BTCS is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and BTCS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTCS Inc 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 BTCS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTCS Inc has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and BTCS go up and down completely randomly.
Pair Corralation between AllianceBernstein and BTCS
Allowing for the 90-day total investment horizon AllianceBernstein is expected to generate 7.88 times less return on investment than BTCS. But when comparing it to its historical volatility, AllianceBernstein Holding LP is 6.06 times less risky than BTCS. It trades about 0.06 of its potential returns per unit of risk. BTCS Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 160.00 in BTCS Inc on September 14, 2024 and sell it today you would earn a total of 202.00 from holding BTCS Inc or generate 126.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. BTCS Inc
Performance |
| Timeline |
| AllianceBernstein |
| BTCS Inc |
AllianceBernstein and BTCS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and BTCS
The main advantage of trading using opposite AllianceBernstein and BTCS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, BTCS 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 BTCS will offset losses from the drop in BTCS's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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