Correlation Between Alliancebernstein and Stone Harbor
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Stone Harbor 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 Stone Harbor 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 Stone Harbor Emerging, you can compare the effects of market volatilities on Alliancebernstein and Stone Harbor 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 Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Stone Harbor.
Diversification Opportunities for Alliancebernstein and Stone Harbor
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Alliancebernstein and Stone is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Stone Harbor Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Harbor Emerging 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 Stone Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Harbor Emerging has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Stone Harbor go up and down completely randomly.
Pair Corralation between Alliancebernstein and Stone Harbor
Considering the 90-day investment horizon Alliancebernstein is expected to generate 1.11 times less return on investment than Stone Harbor. In addition to that, Alliancebernstein is 2.12 times more volatile than Stone Harbor Emerging. It trades about 0.13 of its total potential returns per unit of risk. Stone Harbor Emerging is currently generating about 0.32 per unit of volatility. If you would invest 472.00 in Stone Harbor Emerging on September 14, 2024 and sell it today you would earn a total of 8.00 from holding Stone Harbor Emerging or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein National Mun vs. Stone Harbor Emerging
Performance |
| Timeline |
| Alliancebernstein |
| Stone Harbor Emerging |
Alliancebernstein and Stone Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Stone Harbor
The main advantage of trading using opposite Alliancebernstein and Stone Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Stone Harbor 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 Stone Harbor will offset losses from the drop in Stone Harbor's long position.| Alliancebernstein vs. Eaton Vance Short | Alliancebernstein vs. Allianzgi Diversified Income | Alliancebernstein vs. Ares Dynamic Credit | Alliancebernstein vs. DWS Municipal Income |
| Stone Harbor vs. Angel Oak Multi Strategy | Stone Harbor vs. Franklin Emerging Market | Stone Harbor vs. Dws Emerging Markets | Stone Harbor vs. Nasdaq 100 2x Strategy |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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