Correlation Between AllianceBernstein and Blackstone
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on AllianceBernstein and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Blackstone.
Diversification Opportunities for AllianceBernstein and Blackstone
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AllianceBernstein and Blackstone is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Blackstone go up and down completely randomly.
Pair Corralation between AllianceBernstein and Blackstone
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to under-perform the Blackstone. In addition to that, AllianceBernstein is 1.0 times more volatile than Blackstone Group. It trades about -0.02 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.39 per unit of volatility. If you would invest 16,763 in Blackstone Group on August 23, 2024 and sell it today you would earn a total of 2,638 from holding Blackstone Group or generate 15.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. Blackstone Group
Performance |
| Timeline |
| AllianceBernstein |
| Blackstone Group |
AllianceBernstein and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Blackstone
The main advantage of trading using opposite AllianceBernstein and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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