Correlation Between Alliancebernstein and Steward Covered
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Steward Covered 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 Steward Covered 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 Steward Ered Call, you can compare the effects of market volatilities on Alliancebernstein and Steward Covered 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 Steward Covered. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Steward Covered.
Diversification Opportunities for Alliancebernstein and Steward Covered
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alliancebernstein and Steward is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Steward Ered Call in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward Ered Call 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 Steward Covered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward Ered Call has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Steward Covered go up and down completely randomly.
Pair Corralation between Alliancebernstein and Steward Covered
Considering the 90-day investment horizon Alliancebernstein National Municipal is expected to generate 0.84 times more return on investment than Steward Covered. However, Alliancebernstein National Municipal is 1.19 times less risky than Steward Covered. It trades about 0.12 of its potential returns per unit of risk. Steward Ered Call is currently generating about 0.07 per unit of risk. If you would invest 1,040 in Alliancebernstein National Municipal on September 3, 2024 and sell it today you would earn a total of 109.00 from holding Alliancebernstein National Municipal or generate 10.48% 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. Steward Ered Call
Performance |
| Timeline |
| Alliancebernstein |
| Steward Ered Call |
Alliancebernstein and Steward Covered Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Steward Covered
The main advantage of trading using opposite Alliancebernstein and Steward Covered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Steward Covered 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 Steward Covered will offset losses from the drop in Steward Covered's long position.| Alliancebernstein vs. Eaton Vance Short | Alliancebernstein vs. Allianzgi Diversified Income | Alliancebernstein vs. Ares Dynamic Credit | Alliancebernstein vs. DWS Municipal Income |
| Steward Covered vs. Dws Government Money | Steward Covered vs. Rbc Funds Trust | Steward Covered vs. John Hancock Money | Steward Covered vs. Transamerica Funds |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |