Correlation Between AllianceBernstein and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Eaton Vance 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 Eaton Vance 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 Eaton Vance Senior, you can compare the effects of market volatilities on AllianceBernstein and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Eaton Vance.
Diversification Opportunities for AllianceBernstein and Eaton Vance
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AllianceBernstein and Eaton is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Eaton Vance Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Senior 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Senior has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Eaton Vance go up and down completely randomly.
Pair Corralation between AllianceBernstein and Eaton Vance
Allowing for the 90-day total investment horizon AllianceBernstein is expected to generate 2.29 times less return on investment than Eaton Vance. In addition to that, AllianceBernstein is 2.28 times more volatile than Eaton Vance Senior. It trades about 0.02 of its total potential returns per unit of risk. Eaton Vance Senior is currently generating about 0.1 per unit of volatility. If you would invest 935.00 in Eaton Vance Senior on August 24, 2024 and sell it today you would earn a total of 355.00 from holding Eaton Vance Senior or generate 37.97% 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. Eaton Vance Senior
Performance |
| Timeline |
| AllianceBernstein |
| Eaton Vance Senior |
AllianceBernstein and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Eaton Vance
The main advantage of trading using opposite AllianceBernstein and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| Eaton Vance vs. Blackrock Floating Rate | Eaton Vance vs. Pioneer Floating Rate | Eaton Vance vs. Eaton Vance Senior | Eaton Vance vs. Blackrock Debt Strategies |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |