Correlation Between Alliancebernstein and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Bbh Intermediate 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 Bbh Intermediate 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 Bbh Intermediate Municipal, you can compare the effects of market volatilities on Alliancebernstein and Bbh Intermediate 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 Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Bbh Intermediate.
Diversification Opportunities for Alliancebernstein and Bbh Intermediate
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alliancebernstein and Bbh is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun 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 Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Alliancebernstein and Bbh Intermediate
Considering the 90-day investment horizon Alliancebernstein National Municipal is expected to generate 3.49 times more return on investment than Bbh Intermediate. However, Alliancebernstein is 3.49 times more volatile than Bbh Intermediate Municipal. It trades about 0.06 of its potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about 0.11 per unit of risk. If you would invest 994.00 in Alliancebernstein National Municipal on September 12, 2024 and sell it today you would earn a total of 148.00 from holding Alliancebernstein National Municipal or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein National Mun vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| Alliancebernstein |
| Bbh Intermediate Mun |
Alliancebernstein and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Bbh Intermediate
The main advantage of trading using opposite Alliancebernstein and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Bbh Intermediate 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.| Alliancebernstein vs. Cornerstone Strategic Value | Alliancebernstein vs. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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