Correlation Between AllianceBernstein and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Carlyle Secured 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 Carlyle Secured 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 Carlyle Secured Lending, you can compare the effects of market volatilities on AllianceBernstein and Carlyle Secured 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 Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Carlyle Secured.
Diversification Opportunities for AllianceBernstein and Carlyle Secured
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AllianceBernstein and Carlyle is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Carlyle Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Secured Lending 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 Carlyle Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Secured Lending has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Carlyle Secured go up and down completely randomly.
Pair Corralation between AllianceBernstein and Carlyle Secured
Allowing for the 90-day total investment horizon AllianceBernstein is expected to generate 35.15 times less return on investment than Carlyle Secured. In addition to that, AllianceBernstein is 2.06 times more volatile than Carlyle Secured Lending. It trades about 0.01 of its total potential returns per unit of risk. Carlyle Secured Lending is currently generating about 0.47 per unit of volatility. If you would invest 1,637 in Carlyle Secured Lending on September 13, 2024 and sell it today you would earn a total of 129.00 from holding Carlyle Secured Lending or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. Carlyle Secured Lending
Performance |
| Timeline |
| AllianceBernstein |
| Carlyle Secured Lending |
AllianceBernstein and Carlyle Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Carlyle Secured
The main advantage of trading using opposite AllianceBernstein and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Carlyle Secured 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 Carlyle Secured will offset losses from the drop in Carlyle Secured's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| Carlyle Secured vs. Visa Class A | Carlyle Secured vs. Diamond Hill Investment | Carlyle Secured vs. Distoken Acquisition | Carlyle Secured vs. AllianceBernstein Holding LP |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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