Correlation Between AllianceBernstein and SiriusPoint
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and SiriusPoint 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 SiriusPoint 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 SiriusPoint, you can compare the effects of market volatilities on AllianceBernstein and SiriusPoint 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 SiriusPoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and SiriusPoint.
Diversification Opportunities for AllianceBernstein and SiriusPoint
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AllianceBernstein and SiriusPoint is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and SiriusPoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiriusPoint 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 SiriusPoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SiriusPoint has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and SiriusPoint go up and down completely randomly.
Pair Corralation between AllianceBernstein and SiriusPoint
Allowing for the 90-day total investment horizon AllianceBernstein is expected to generate 1.28 times less return on investment than SiriusPoint. In addition to that, AllianceBernstein is 2.0 times more volatile than SiriusPoint. It trades about 0.02 of its total potential returns per unit of risk. SiriusPoint is currently generating about 0.06 per unit of volatility. If you would invest 2,050 in SiriusPoint on August 30, 2024 and sell it today you would earn a total of 488.00 from holding SiriusPoint or generate 23.8% 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. SiriusPoint
Performance |
| Timeline |
| AllianceBernstein |
| SiriusPoint |
AllianceBernstein and SiriusPoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and SiriusPoint
The main advantage of trading using opposite AllianceBernstein and SiriusPoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, SiriusPoint 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 SiriusPoint will offset losses from the drop in SiriusPoint's long position.| AllianceBernstein vs. TPG Inc | AllianceBernstein vs. Carlyle Secured Lending | AllianceBernstein vs. Brookfield Corp |
| SiriusPoint vs. RLJ Lodging Trust | SiriusPoint vs. Argo Group International | SiriusPoint vs. New York Mortgage | SiriusPoint vs. HUMANA INC |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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