Correlation Between ANT and Alliancebernstein
Can any of the company-specific risk be diversified away by investing in both ANT and Alliancebernstein 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 ANT and Alliancebernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Alliancebernstein Bond, you can compare the effects of market volatilities on ANT and Alliancebernstein 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 ANT with a short position of Alliancebernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Alliancebernstein.
Diversification Opportunities for ANT and Alliancebernstein
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANT and Alliancebernstein is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Alliancebernstein Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliancebernstein Bond and ANT 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 ANT are associated (or correlated) with Alliancebernstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliancebernstein Bond has no effect on the direction of ANT i.e., ANT and Alliancebernstein go up and down completely randomly.
Pair Corralation between ANT and Alliancebernstein
Assuming the 90 days trading horizon ANT is expected to generate 1.33 times more return on investment than Alliancebernstein. However, ANT is 1.33 times more volatile than Alliancebernstein Bond. It trades about 0.1 of its potential returns per unit of risk. Alliancebernstein Bond is currently generating about 0.08 per unit of risk. If you would invest 321.00 in ANT on October 20, 2024 and sell it today you would lose (174.00) from holding ANT or give up 54.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 83.89% |
| Values | Daily Returns |
ANT vs. Alliancebernstein Bond
Performance |
| Timeline |
| ANT |
| Alliancebernstein Bond |
ANT and Alliancebernstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Alliancebernstein
The main advantage of trading using opposite ANT and Alliancebernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Alliancebernstein 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 Alliancebernstein will offset losses from the drop in Alliancebernstein's long position.The idea behind ANT and Alliancebernstein Bond pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Alliancebernstein vs. Vanguard Total Stock | Alliancebernstein vs. Vanguard 500 Index | Alliancebernstein vs. Vanguard Total Stock | Alliancebernstein vs. Vanguard Total Stock |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |