Correlation Between AllianceBernstein and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Oxford Lane 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 Oxford Lane 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 Oxford Lane Capital, you can compare the effects of market volatilities on AllianceBernstein and Oxford Lane 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 Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Oxford Lane.
Diversification Opportunities for AllianceBernstein and Oxford Lane
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AllianceBernstein and Oxford is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Oxford Lane Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Lane Capital 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 Oxford Lane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Lane Capital has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Oxford Lane go up and down completely randomly.
Pair Corralation between AllianceBernstein and Oxford Lane
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to under-perform the Oxford Lane. In addition to that, AllianceBernstein is 3.7 times more volatile than Oxford Lane Capital. It trades about -0.13 of its total potential returns per unit of risk. Oxford Lane Capital is currently generating about -0.1 per unit of volatility. If you would invest 2,406 in Oxford Lane Capital on August 25, 2024 and sell it today you would lose (25.00) from holding Oxford Lane Capital or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. Oxford Lane Capital
Performance |
| Timeline |
| AllianceBernstein |
| Oxford Lane Capital |
AllianceBernstein and Oxford Lane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Oxford Lane
The main advantage of trading using opposite AllianceBernstein and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Oxford Lane 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 Oxford Lane will offset losses from the drop in Oxford Lane's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. CHS Inc CM | Oxford Lane vs. Fifth Third Bancorp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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