Correlation Between Alliancebernstein and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Icon Financial 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 Icon Financial 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 Icon Financial Fund, you can compare the effects of market volatilities on Alliancebernstein and Icon Financial 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 Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Icon Financial.
Diversification Opportunities for Alliancebernstein and Icon Financial
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alliancebernstein and Icon is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial 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 Icon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Financial has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Icon Financial go up and down completely randomly.
Pair Corralation between Alliancebernstein and Icon Financial
Considering the 90-day investment horizon Alliancebernstein National Municipal is expected to generate 0.31 times more return on investment than Icon Financial. However, Alliancebernstein National Municipal is 3.28 times less risky than Icon Financial. It trades about 0.05 of its potential returns per unit of risk. Icon Financial Fund is currently generating about -0.04 per unit of risk. If you would invest 1,132 in Alliancebernstein National Municipal on September 4, 2024 and sell it today you would earn a total of 20.00 from holding Alliancebernstein National Municipal or generate 1.77% 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. Icon Financial Fund
Performance |
| Timeline |
| Alliancebernstein |
| Icon Financial |
Alliancebernstein and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Icon Financial
The main advantage of trading using opposite Alliancebernstein and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Icon Financial 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 Icon Financial will offset losses from the drop in Icon Financial's long position.| Alliancebernstein vs. Eaton Vance Short | Alliancebernstein vs. Allianzgi Diversified Income | Alliancebernstein vs. DWS Municipal Income | Alliancebernstein vs. Brookfield Business Corp |
| Icon Financial vs. Limited Term Tax | Icon Financial vs. Bbh Intermediate Municipal | Icon Financial vs. Alliancebernstein National Municipal | Icon Financial vs. Gamco Global Telecommunications |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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