Correlation Between Alliancebernstein and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Amg Managers 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 Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein National Municipal and Amg Managers Fairpointe, you can compare the effects of market volatilities on Alliancebernstein and Amg Managers 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 Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Amg Managers.
Diversification Opportunities for Alliancebernstein and Amg Managers
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alliancebernstein and Amg is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Amg Managers Fairpointe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Fairpointe 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 National Municipal are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Fairpointe has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Amg Managers go up and down completely randomly.
Pair Corralation between Alliancebernstein and Amg Managers
Considering the 90-day investment horizon Alliancebernstein National Municipal is expected to under-perform the Amg Managers. But the fund apears to be less risky and, when comparing its historical volatility, Alliancebernstein National Municipal is 1.22 times less risky than Amg Managers. The fund trades about -0.04 of its potential returns per unit of risk. The Amg Managers Fairpointe is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,299 in Amg Managers Fairpointe on September 12, 2024 and sell it today you would earn a total of 270.00 from holding Amg Managers Fairpointe or generate 11.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein National Mun vs. Amg Managers Fairpointe
Performance |
| Timeline |
| Alliancebernstein |
| Amg Managers Fairpointe |
Alliancebernstein and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Amg Managers
The main advantage of trading using opposite Alliancebernstein and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Alliancebernstein vs. Cornerstone Strategic Value | Alliancebernstein vs. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities |
| Amg Managers vs. Lebenthal Lisanti Small | Amg Managers vs. Smallcap Growth Fund | Amg Managers vs. Small Pany Growth | Amg Managers vs. Mutual Of America |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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