Correlation Between AllianceBernstein and New Mountain
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and New Mountain 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 New Mountain 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 New Mountain Finance, you can compare the effects of market volatilities on AllianceBernstein and New Mountain 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 New Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and New Mountain.
Diversification Opportunities for AllianceBernstein and New Mountain
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AllianceBernstein and New is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and New Mountain Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Mountain Finance 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 New Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Mountain Finance has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and New Mountain go up and down completely randomly.
Pair Corralation between AllianceBernstein and New Mountain
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to under-perform the New Mountain. In addition to that, AllianceBernstein is 1.28 times more volatile than New Mountain Finance. It trades about 0.0 of its total potential returns per unit of risk. New Mountain Finance is currently generating about 0.0 per unit of volatility. If you would invest 1,155 in New Mountain Finance on August 24, 2024 and sell it today you would lose (2.00) from holding New Mountain Finance or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. New Mountain Finance
Performance |
| Timeline |
| AllianceBernstein |
| New Mountain Finance |
AllianceBernstein and New Mountain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and New Mountain
The main advantage of trading using opposite AllianceBernstein and New Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, New Mountain 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 New Mountain will offset losses from the drop in New Mountain's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| New Mountain vs. Invesco Advantage MIT | New Mountain vs. Invesco Municipal Trust | New Mountain vs. Invesco California Value | New Mountain vs. Victory Capital Holdings |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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