Correlation Between Alliancebernstein and Fidelity New
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Fidelity New 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 Fidelity New 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 Fidelity New York, you can compare the effects of market volatilities on Alliancebernstein and Fidelity New 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 Fidelity New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Fidelity New.
Diversification Opportunities for Alliancebernstein and Fidelity New
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alliancebernstein and Fidelity is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Fidelity New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity New York 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 Fidelity New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity New York has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Fidelity New go up and down completely randomly.
Pair Corralation between Alliancebernstein and Fidelity New
Considering the 90-day investment horizon Alliancebernstein National Municipal is expected to generate 2.03 times more return on investment than Fidelity New. However, Alliancebernstein is 2.03 times more volatile than Fidelity New York. It trades about 0.18 of its potential returns per unit of risk. Fidelity New York is currently generating about 0.22 per unit of risk. If you would invest 1,118 in Alliancebernstein National Municipal on September 2, 2024 and sell it today you would earn a total of 31.00 from holding Alliancebernstein National Municipal or generate 2.77% 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. Fidelity New York
Performance |
| Timeline |
| Alliancebernstein |
| Fidelity New York |
Alliancebernstein and Fidelity New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Fidelity New
The main advantage of trading using opposite Alliancebernstein and Fidelity New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Fidelity New 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 Fidelity New will offset losses from the drop in Fidelity New's long position.| Alliancebernstein vs. Eaton Vance Short | Alliancebernstein vs. Allianzgi Diversified Income | Alliancebernstein vs. Ares Dynamic Credit | Alliancebernstein vs. DWS Municipal Income |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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