Correlation Between AllianceBernstein and Futuretech
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Futuretech 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 Futuretech 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 Futuretech II Acquisition, you can compare the effects of market volatilities on AllianceBernstein and Futuretech 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 Futuretech. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Futuretech.
Diversification Opportunities for AllianceBernstein and Futuretech
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between AllianceBernstein and Futuretech is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Futuretech II Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futuretech II Acquisition 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 Futuretech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futuretech II Acquisition has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Futuretech go up and down completely randomly.
Pair Corralation between AllianceBernstein and Futuretech
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 3.61 times more return on investment than Futuretech. However, AllianceBernstein is 3.61 times more volatile than Futuretech II Acquisition. It trades about 0.04 of its potential returns per unit of risk. Futuretech II Acquisition is currently generating about 0.04 per unit of risk. If you would invest 2,902 in AllianceBernstein Holding LP on September 13, 2024 and sell it today you would earn a total of 717.00 from holding AllianceBernstein Holding LP or generate 24.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. Futuretech II Acquisition
Performance |
| Timeline |
| AllianceBernstein |
| Futuretech II Acquisition |
AllianceBernstein and Futuretech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Futuretech
The main advantage of trading using opposite AllianceBernstein and Futuretech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Futuretech 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 Futuretech will offset losses from the drop in Futuretech's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| Futuretech vs. Visa Class A | Futuretech vs. Diamond Hill Investment | Futuretech vs. Distoken Acquisition | Futuretech 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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