Correlation Between Alliancebernstein and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Astor Long/short 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 Astor Long/short 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 Astor Longshort Fund, you can compare the effects of market volatilities on Alliancebernstein and Astor Long/short 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 Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Astor Long/short.
Diversification Opportunities for Alliancebernstein and Astor Long/short
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alliancebernstein and Astor is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short 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 Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Astor Long/short go up and down completely randomly.
Pair Corralation between Alliancebernstein and Astor Long/short
Considering the 90-day investment horizon Alliancebernstein National Municipal is expected to under-perform the Astor Long/short. In addition to that, Alliancebernstein is 1.87 times more volatile than Astor Longshort Fund. It trades about -0.09 of its total potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.17 per unit of volatility. If you would invest 1,279 in Astor Longshort Fund on August 27, 2024 and sell it today you would earn a total of 35.00 from holding Astor Longshort Fund or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein National Mun vs. Astor Longshort Fund
Performance |
| Timeline |
| Alliancebernstein |
| Astor Long/short |
Alliancebernstein and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Astor Long/short
The main advantage of trading using opposite Alliancebernstein and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.| Alliancebernstein vs. Eaton Vance Short | Alliancebernstein vs. Allianzgi Diversified Income | Alliancebernstein vs. Ares Dynamic Credit | Alliancebernstein vs. DWS Municipal Income |
| Astor Long/short vs. Transamerica Funds | Astor Long/short vs. Dreyfus Institutional Reserves | Astor Long/short vs. Pioneer Money Market | Astor Long/short vs. Franklin Government Money |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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