Correlation Between AllianceBernstein and Finance Of
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Finance Of 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 Finance Of 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 Finance of America, you can compare the effects of market volatilities on AllianceBernstein and Finance Of 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 Finance Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Finance Of.
Diversification Opportunities for AllianceBernstein and Finance Of
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between AllianceBernstein and Finance is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Finance of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finance of America 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 Finance Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finance of America has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Finance Of go up and down completely randomly.
Pair Corralation between AllianceBernstein and Finance Of
Allowing for the 90-day total investment horizon AllianceBernstein is expected to generate 5.99 times less return on investment than Finance Of. But when comparing it to its historical volatility, AllianceBernstein Holding LP is 3.93 times less risky than Finance Of. It trades about 0.03 of its potential returns per unit of risk. Finance of America is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,630 in Finance of America on November 2, 2024 and sell it today you would earn a total of 866.00 from holding Finance of America or generate 53.13% 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. Finance of America
Performance |
| Timeline |
| AllianceBernstein |
| Finance of America |
AllianceBernstein and Finance Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Finance Of
The main advantage of trading using opposite AllianceBernstein and Finance Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Finance Of 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 Finance Of will offset losses from the drop in Finance Of's long position.| AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation | AllianceBernstein vs. Carlyle Secured Lending |
| Finance Of vs. Regional Management Corp | Finance Of vs. Orix Corp Ads | Finance Of vs. FirstCash | Finance Of vs. EZCORP Inc |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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