Correlation Between AllianceBernstein and PennyMac Finl
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and PennyMac Finl 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 PennyMac Finl 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 PennyMac Finl Svcs, you can compare the effects of market volatilities on AllianceBernstein and PennyMac Finl 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 PennyMac Finl. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and PennyMac Finl.
Diversification Opportunities for AllianceBernstein and PennyMac Finl
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AllianceBernstein and PennyMac is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and PennyMac Finl Svcs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennyMac Finl Svcs 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 PennyMac Finl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennyMac Finl Svcs has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and PennyMac Finl go up and down completely randomly.
Pair Corralation between AllianceBernstein and PennyMac Finl
If you would invest 3,373 in AllianceBernstein Holding LP on August 30, 2024 and sell it today you would earn a total of 294.00 from holding AllianceBernstein Holding LP or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. PennyMac Finl Svcs
Performance |
| Timeline |
| AllianceBernstein |
| PennyMac Finl Svcs |
AllianceBernstein and PennyMac Finl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and PennyMac Finl
The main advantage of trading using opposite AllianceBernstein and PennyMac Finl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, PennyMac Finl 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 PennyMac Finl will offset losses from the drop in PennyMac Finl'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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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