Correlation Between AllianceBernstein and WhiteHorse Finance
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and WhiteHorse Finance 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 WhiteHorse Finance 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 WhiteHorse Finance, you can compare the effects of market volatilities on AllianceBernstein and WhiteHorse Finance 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 WhiteHorse Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and WhiteHorse Finance.
Diversification Opportunities for AllianceBernstein and WhiteHorse Finance
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between AllianceBernstein and WhiteHorse is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and WhiteHorse Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WhiteHorse Finance 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 WhiteHorse Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WhiteHorse Finance has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and WhiteHorse Finance go up and down completely randomly.
Pair Corralation between AllianceBernstein and WhiteHorse Finance
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 1.23 times more return on investment than WhiteHorse Finance. However, AllianceBernstein is 1.23 times more volatile than WhiteHorse Finance. It trades about 0.04 of its potential returns per unit of risk. WhiteHorse Finance is currently generating about 0.02 per unit of risk. If you would invest 2,902 in AllianceBernstein Holding LP on September 13, 2024 and sell it today you would earn a total of 717.00 from holding AllianceBernstein Holding LP or generate 24.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. WhiteHorse Finance
Performance |
| Timeline |
| AllianceBernstein |
| WhiteHorse Finance |
AllianceBernstein and WhiteHorse Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and WhiteHorse Finance
The main advantage of trading using opposite AllianceBernstein and WhiteHorse Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, WhiteHorse Finance 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 WhiteHorse Finance will offset losses from the drop in WhiteHorse Finance's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| WhiteHorse Finance vs. Visa Class A | WhiteHorse Finance vs. Diamond Hill Investment | WhiteHorse Finance vs. Distoken Acquisition | WhiteHorse Finance vs. AllianceBernstein Holding LP |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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