Correlation Between AllianceBernstein and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Marblegate Acquisition 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 Marblegate Acquisition 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 Marblegate Acquisition Corp, you can compare the effects of market volatilities on AllianceBernstein and Marblegate Acquisition 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 Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Marblegate Acquisition.
Diversification Opportunities for AllianceBernstein and Marblegate Acquisition
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AllianceBernstein and Marblegate is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate 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 Marblegate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marblegate Acquisition has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between AllianceBernstein and Marblegate Acquisition
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 3.61 times more return on investment than Marblegate Acquisition. However, AllianceBernstein is 3.61 times more volatile than Marblegate Acquisition Corp. It trades about 0.02 of its potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about 0.04 per unit of risk. If you would invest 3,320 in AllianceBernstein Holding LP on August 29, 2024 and sell it today you would earn a total of 347.00 from holding AllianceBernstein Holding LP or generate 10.45% 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. Marblegate Acquisition Corp
Performance |
| Timeline |
| AllianceBernstein |
| Marblegate Acquisition |
AllianceBernstein and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Marblegate Acquisition
The main advantage of trading using opposite AllianceBernstein and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Marblegate Acquisition 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 Marblegate Acquisition will offset losses from the drop in Marblegate Acquisition's long position.| AllianceBernstein vs. TPG Inc | AllianceBernstein vs. Carlyle Secured Lending | AllianceBernstein vs. Brookfield Corp |
| Marblegate Acquisition vs. Alpha One | Marblegate Acquisition vs. Manaris Corp | Marblegate Acquisition vs. Hudson Acquisition I | Marblegate Acquisition vs. DP Cap Acquisition |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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