Correlation Between AllianceBernstein and FirstCash
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and FirstCash 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 FirstCash 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 FirstCash, you can compare the effects of market volatilities on AllianceBernstein and FirstCash 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 FirstCash. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and FirstCash.
Diversification Opportunities for AllianceBernstein and FirstCash
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AllianceBernstein and FirstCash is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and FirstCash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstCash 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 FirstCash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstCash has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and FirstCash go up and down completely randomly.
Pair Corralation between AllianceBernstein and FirstCash
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 0.9 times more return on investment than FirstCash. However, AllianceBernstein Holding LP is 1.11 times less risky than FirstCash. It trades about 0.11 of its potential returns per unit of risk. FirstCash is currently generating about -0.06 per unit of risk. If you would invest 3,417 in AllianceBernstein Holding LP on August 30, 2024 and sell it today you would earn a total of 250.00 from holding AllianceBernstein Holding LP or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. FirstCash
Performance |
| Timeline |
| AllianceBernstein |
| FirstCash |
AllianceBernstein and FirstCash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and FirstCash
The main advantage of trading using opposite AllianceBernstein and FirstCash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, FirstCash 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 FirstCash will offset losses from the drop in FirstCash's long position.| AllianceBernstein vs. ClimateRock Class A | AllianceBernstein vs. CF Acquisition VII | AllianceBernstein vs. DP Cap Acquisition |
| FirstCash vs. 360 Finance | FirstCash vs. Atlanticus Holdings | FirstCash vs. X Financial Class | FirstCash vs. Yirendai |
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.
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