Correlation Between AllianceBernstein and John Hancock
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and John Hancock 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 John Hancock 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 John Hancock Income, you can compare the effects of market volatilities on AllianceBernstein and John Hancock 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 John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and John Hancock.
Diversification Opportunities for AllianceBernstein and John Hancock
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AllianceBernstein and John is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income 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 John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Income has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and John Hancock go up and down completely randomly.
Pair Corralation between AllianceBernstein and John Hancock
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 2.29 times more return on investment than John Hancock. However, AllianceBernstein is 2.29 times more volatile than John Hancock Income. It trades about 0.04 of its potential returns per unit of risk. John Hancock Income is currently generating about 0.04 per unit of risk. If you would invest 2,886 in AllianceBernstein Holding LP on September 14, 2024 and sell it today you would earn a total of 701.00 from holding AllianceBernstein Holding LP or generate 24.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. John Hancock Income
Performance |
| Timeline |
| AllianceBernstein |
| John Hancock Income |
AllianceBernstein and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and John Hancock
The main advantage of trading using opposite AllianceBernstein and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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