Correlation Between Alliancebernstein and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Lord Abbett 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 Lord Abbett 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 Lord Abbett Affiliated, you can compare the effects of market volatilities on Alliancebernstein and Lord Abbett 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 Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Lord Abbett.
Diversification Opportunities for Alliancebernstein and Lord Abbett
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alliancebernstein and Lord is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Lord Abbett Affiliated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Affiliated 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 Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Affiliated has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Lord Abbett go up and down completely randomly.
Pair Corralation between Alliancebernstein and Lord Abbett
Considering the 90-day investment horizon Alliancebernstein is expected to generate 1.74 times less return on investment than Lord Abbett. But when comparing it to its historical volatility, Alliancebernstein National Municipal is 1.1 times less risky than Lord Abbett. It trades about 0.04 of its potential returns per unit of risk. Lord Abbett Affiliated is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,506 in Lord Abbett Affiliated on September 20, 2024 and sell it today you would earn a total of 359.00 from holding Lord Abbett Affiliated or generate 23.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Alliancebernstein National Mun vs. Lord Abbett Affiliated
Performance |
| Timeline |
| Alliancebernstein |
| Lord Abbett Affiliated |
Alliancebernstein and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Lord Abbett
The main advantage of trading using opposite Alliancebernstein and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Alliancebernstein vs. Eaton Vance Short | Alliancebernstein vs. Allianzgi Diversified Income | Alliancebernstein vs. Ares Dynamic Credit | Alliancebernstein vs. DWS Municipal Income |
| Lord Abbett vs. Alliancebernstein National Municipal | Lord Abbett vs. Dws Government Money | Lord Abbett vs. Versatile Bond Portfolio | Lord Abbett vs. Touchstone Premium Yield |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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