Correlation Between Alliancebernstein and Dunham High
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Dunham High 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 Dunham High 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 Dunham High Yield, you can compare the effects of market volatilities on Alliancebernstein and Dunham High 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 Dunham High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Dunham High.
Diversification Opportunities for Alliancebernstein and Dunham High
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alliancebernstein and Dunham is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Dunham High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham High Yield 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 Dunham High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham High Yield has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Dunham High go up and down completely randomly.
Pair Corralation between Alliancebernstein and Dunham High
Considering the 90-day investment horizon Alliancebernstein National Municipal is expected to generate 2.77 times more return on investment than Dunham High. However, Alliancebernstein is 2.77 times more volatile than Dunham High Yield. It trades about 0.08 of its potential returns per unit of risk. Dunham High Yield is currently generating about 0.18 per unit of risk. If you would invest 1,033 in Alliancebernstein National Municipal on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Alliancebernstein National Municipal or generate 10.55% 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. Dunham High Yield
Performance |
| Timeline |
| Alliancebernstein |
| Dunham High Yield |
Alliancebernstein and Dunham High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Dunham High
The main advantage of trading using opposite Alliancebernstein and Dunham High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Dunham High 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 Dunham High will offset losses from the drop in Dunham High's long position.| Alliancebernstein vs. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities | Alliancebernstein vs. Stone Harbor Emerging |
| Dunham High vs. SCOR PK | Dunham High vs. Morningstar Unconstrained Allocation | Dunham High vs. Via Renewables | Dunham High vs. Bondbloxx ETF Trust |
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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |