Correlation Between Alliancebernstein and Touchstone Ohio
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Touchstone Ohio 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 Touchstone Ohio 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 Touchstone Ohio Tax, you can compare the effects of market volatilities on Alliancebernstein and Touchstone Ohio 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 Touchstone Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Touchstone Ohio.
Diversification Opportunities for Alliancebernstein and Touchstone Ohio
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alliancebernstein and Touchstone is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Touchstone Ohio Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Ohio Tax 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 Touchstone Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Ohio Tax has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Touchstone Ohio go up and down completely randomly.
Pair Corralation between Alliancebernstein and Touchstone Ohio
Considering the 90-day investment horizon Alliancebernstein National Municipal is expected to generate 2.97 times more return on investment than Touchstone Ohio. However, Alliancebernstein is 2.97 times more volatile than Touchstone Ohio Tax. It trades about 0.08 of its potential returns per unit of risk. Touchstone Ohio Tax is currently generating about 0.11 per unit of risk. If you would invest 970.00 in Alliancebernstein National Municipal on September 12, 2024 and sell it today you would earn a total of 172.00 from holding Alliancebernstein National Municipal or generate 17.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein National Mun vs. Touchstone Ohio Tax
Performance |
| Timeline |
| Alliancebernstein |
| Touchstone Ohio Tax |
Alliancebernstein and Touchstone Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Touchstone Ohio
The main advantage of trading using opposite Alliancebernstein and Touchstone Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Touchstone Ohio 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 Touchstone Ohio will offset losses from the drop in Touchstone Ohio's long position.| Alliancebernstein vs. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities | Alliancebernstein vs. Stone Harbor Emerging |
| Touchstone Ohio vs. Artisan High Income | Touchstone Ohio vs. Doubleline Yield Opportunities | Touchstone Ohio vs. Alliancebernstein National Municipal | Touchstone Ohio vs. Dreyfusstandish Global Fixed |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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