Correlation Between AllianceBernstein and OppFi
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and OppFi 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 OppFi 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 OppFi Inc, you can compare the effects of market volatilities on AllianceBernstein and OppFi 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 OppFi. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and OppFi.
Diversification Opportunities for AllianceBernstein and OppFi
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AllianceBernstein and OppFi is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and OppFi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OppFi Inc 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 OppFi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OppFi Inc has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and OppFi go up and down completely randomly.
Pair Corralation between AllianceBernstein and OppFi
Allowing for the 90-day total investment horizon AllianceBernstein is expected to generate 58.81 times less return on investment than OppFi. But when comparing it to its historical volatility, AllianceBernstein Holding LP is 3.07 times less risky than OppFi. It trades about 0.02 of its potential returns per unit of risk. OppFi Inc is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 524.00 in OppFi Inc on August 31, 2024 and sell it today you would earn a total of 274.00 from holding OppFi Inc or generate 52.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. OppFi Inc
Performance |
| Timeline |
| AllianceBernstein |
| OppFi Inc |
AllianceBernstein and OppFi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and OppFi
The main advantage of trading using opposite AllianceBernstein and OppFi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, OppFi 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 OppFi will offset losses from the drop in OppFi's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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