Correlation Between Alliancebernstein and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Templeton Global 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 Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein Global High and Templeton Global Bond, you can compare the effects of market volatilities on Alliancebernstein and Templeton Global 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 Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Templeton Global.
Diversification Opportunities for Alliancebernstein and Templeton Global
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alliancebernstein and Templeton is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Templeton Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Bond 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 Global High are associated (or correlated) with Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Bond has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Templeton Global go up and down completely randomly.
Pair Corralation between Alliancebernstein and Templeton Global
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 0.66 times more return on investment than Templeton Global. However, Alliancebernstein Global High is 1.51 times less risky than Templeton Global. It trades about 0.0 of its potential returns per unit of risk. Templeton Global Bond is currently generating about -0.12 per unit of risk. If you would invest 1,085 in Alliancebernstein Global High on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Alliancebernstein Global High or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Alliancebernstein Global High vs. Templeton Global Bond
Performance |
| Timeline |
| Alliancebernstein |
| Templeton Global Bond |
Alliancebernstein and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Templeton Global
The main advantage of trading using opposite Alliancebernstein and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Templeton Global 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 Templeton Global will offset losses from the drop in Templeton Global's long position.| Alliancebernstein vs. MFS Investment Grade | Alliancebernstein vs. Eaton Vance National | Alliancebernstein vs. Blackrock Muniyield Quality | Alliancebernstein vs. Munivest Fund |
| Templeton Global vs. Western Asset High | Templeton Global vs. Alliancebernstein Global High | Templeton Global vs. Ab Global Risk | Templeton Global vs. California High Yield Municipal |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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