Correlation Between Alliancebernstein and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Mainstay Moderate 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 Mainstay Moderate 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 Mainstay Moderate Allocation, you can compare the effects of market volatilities on Alliancebernstein and Mainstay Moderate 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 Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Mainstay Moderate.
Diversification Opportunities for Alliancebernstein and Mainstay Moderate
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Alliancebernstein and Mainstay is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Mainstay Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate 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 Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Alliancebernstein and Mainstay Moderate
Considering the 90-day investment horizon Alliancebernstein is expected to generate 1.27 times less return on investment than Mainstay Moderate. In addition to that, Alliancebernstein is 1.28 times more volatile than Mainstay Moderate Allocation. It trades about 0.05 of its total potential returns per unit of risk. Mainstay Moderate Allocation is currently generating about 0.08 per unit of volatility. If you would invest 1,140 in Mainstay Moderate Allocation on December 4, 2024 and sell it today you would earn a total of 230.00 from holding Mainstay Moderate Allocation or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.58% |
| Values | Daily Returns |
Alliancebernstein National Mun vs. Mainstay Moderate Allocation
Performance |
| Timeline |
| Alliancebernstein |
| Mainstay Moderate |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Alliancebernstein and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Mainstay Moderate
The main advantage of trading using opposite Alliancebernstein and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Mainstay Moderate 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 Mainstay Moderate will offset losses from the drop in Mainstay Moderate's long position.| Alliancebernstein vs. Eaton Vance Short | Alliancebernstein vs. Allianzgi Diversified Income | Alliancebernstein vs. Ares Dynamic Credit | Alliancebernstein vs. DWS Municipal Income |
| Mainstay Moderate vs. Boston Partners Small | Mainstay Moderate vs. T Rowe Price | Mainstay Moderate vs. Ultrasmall Cap Profund Ultrasmall Cap | Mainstay Moderate vs. T Rowe Price |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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