Correlation Between Alliancebernstein and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Harding Loevner 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 Harding Loevner 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 Harding Loevner Funds, you can compare the effects of market volatilities on Alliancebernstein and Harding Loevner 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 Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Harding Loevner.
Diversification Opportunities for Alliancebernstein and Harding Loevner
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alliancebernstein and Harding is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Harding Loevner Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Funds 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 Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Funds has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Harding Loevner go up and down completely randomly.
Pair Corralation between Alliancebernstein and Harding Loevner
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 0.74 times more return on investment than Harding Loevner. However, Alliancebernstein Global High is 1.34 times less risky than Harding Loevner. It trades about 0.11 of its potential returns per unit of risk. Harding Loevner Funds is currently generating about 0.01 per unit of risk. If you would invest 882.00 in Alliancebernstein Global High on September 12, 2024 and sell it today you would earn a total of 205.00 from holding Alliancebernstein Global High or generate 23.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Alliancebernstein Global High vs. Harding Loevner Funds
Performance |
| Timeline |
| Alliancebernstein |
| Harding Loevner Funds |
Alliancebernstein and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Harding Loevner
The main advantage of trading using opposite Alliancebernstein and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.| Alliancebernstein vs. Cornerstone Strategic Value | Alliancebernstein vs. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities |
| Harding Loevner vs. Franklin Mutual Global | Harding Loevner vs. Ab Global Real | Harding Loevner vs. Morningstar Global Income | Harding Loevner vs. Alliancebernstein Global High |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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