Correlation Between Alliancebernstein and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Aberdeen Global 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 Aberdeen Global 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 Aberdeen Global Premier, you can compare the effects of market volatilities on Alliancebernstein and Aberdeen Global 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 Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Aberdeen Global.
Diversification Opportunities for Alliancebernstein and Aberdeen Global
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alliancebernstein and Aberdeen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Aberdeen Global Premier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Premier 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 Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global Premier has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Aberdeen Global go up and down completely randomly.
Pair Corralation between Alliancebernstein and Aberdeen Global
Considering the 90-day investment horizon Alliancebernstein National Municipal is expected to generate 0.55 times more return on investment than Aberdeen Global. However, Alliancebernstein National Municipal is 1.81 times less risky than Aberdeen Global. It trades about 0.06 of its potential returns per unit of risk. Aberdeen Global Premier is currently generating about -0.04 per unit of risk. If you would invest 1,119 in Alliancebernstein National Municipal on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Alliancebernstein National Municipal or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein National Mun vs. Aberdeen Global Premier
Performance |
| Timeline |
| Alliancebernstein |
| Aberdeen Global Premier |
Alliancebernstein and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Aberdeen Global
The main advantage of trading using opposite Alliancebernstein and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Aberdeen Global 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.| Alliancebernstein vs. Eaton Vance Short | Alliancebernstein vs. Allianzgi Diversified Income | Alliancebernstein vs. Ares Dynamic Credit | Alliancebernstein vs. DWS Municipal Income |
| Aberdeen Global vs. Aberdeen Global Dynamic | Aberdeen Global vs. Blackrock Resources Commodities | Aberdeen Global vs. Aberdeen Total Dynamic | Aberdeen Global vs. Blackrock Enhanced Equity |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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