Correlation Between AllianceBernstein and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Invesco Municipal 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 Invesco Municipal 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 Invesco Municipal Trust, you can compare the effects of market volatilities on AllianceBernstein and Invesco Municipal 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 Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Invesco Municipal.
Diversification Opportunities for AllianceBernstein and Invesco Municipal
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AllianceBernstein and Invesco is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Invesco Municipal Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal Trust 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 Invesco Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal Trust has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Invesco Municipal go up and down completely randomly.
Pair Corralation between AllianceBernstein and Invesco Municipal
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to under-perform the Invesco Municipal. In addition to that, AllianceBernstein is 2.92 times more volatile than Invesco Municipal Trust. It trades about 0.0 of its total potential returns per unit of risk. Invesco Municipal Trust is currently generating about -0.01 per unit of volatility. If you would invest 989.00 in Invesco Municipal Trust on August 24, 2024 and sell it today you would lose (1.50) from holding Invesco Municipal Trust or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. Invesco Municipal Trust
Performance |
| Timeline |
| AllianceBernstein |
| Invesco Municipal Trust |
AllianceBernstein and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Invesco Municipal
The main advantage of trading using opposite AllianceBernstein and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Invesco Municipal 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 Invesco Municipal will offset losses from the drop in Invesco Municipal's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| Invesco Municipal vs. Invesco Trust For | Invesco Municipal vs. Invesco Quality Municipal | Invesco Municipal vs. Invesco Municipal Opportunity | Invesco Municipal vs. MFS High Income |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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