Correlation Between AllianceBernstein and SLM Corp
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and SLM Corp 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 SLM Corp 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 SLM Corp, you can compare the effects of market volatilities on AllianceBernstein and SLM Corp 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 SLM Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and SLM Corp.
Diversification Opportunities for AllianceBernstein and SLM Corp
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AllianceBernstein and SLM is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and SLM Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLM Corp 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 SLM Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLM Corp has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and SLM Corp go up and down completely randomly.
Pair Corralation between AllianceBernstein and SLM Corp
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to under-perform the SLM Corp. But the stock apears to be less risky and, when comparing its historical volatility, AllianceBernstein Holding LP is 1.86 times less risky than SLM Corp. The stock trades about 0.0 of its potential returns per unit of risk. The SLM Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,280 in SLM Corp on August 24, 2024 and sell it today you would earn a total of 206.00 from holding SLM Corp or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. SLM Corp
Performance |
| Timeline |
| AllianceBernstein |
| SLM Corp |
AllianceBernstein and SLM Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and SLM Corp
The main advantage of trading using opposite AllianceBernstein and SLM Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, SLM Corp 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 SLM Corp will offset losses from the drop in SLM Corp's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| SLM Corp vs. Small Cap Core | SLM Corp vs. Morningstar Unconstrained Allocation | SLM Corp vs. Mutual Of America | SLM Corp vs. Ep Emerging Markets |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |