Correlation Between Alliancebernstein and Harbor International
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Harbor International 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 Harbor International 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 Harbor International Small, you can compare the effects of market volatilities on Alliancebernstein and Harbor International 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 Harbor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Harbor International.
Diversification Opportunities for Alliancebernstein and Harbor International
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alliancebernstein and Harbor is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Harbor International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor International 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 Harbor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor International has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Harbor International go up and down completely randomly.
Pair Corralation between Alliancebernstein and Harbor International
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 0.6 times more return on investment than Harbor International. However, Alliancebernstein Global High is 1.67 times less risky than Harbor International. It trades about 0.13 of its potential returns per unit of risk. Harbor International Small is currently generating about 0.02 per unit of risk. If you would invest 933.00 in Alliancebernstein Global High on September 12, 2024 and sell it today you would earn a total of 154.00 from holding Alliancebernstein Global High or generate 16.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein Global High vs. Harbor International Small
Performance |
| Timeline |
| Alliancebernstein |
| Harbor International |
Alliancebernstein and Harbor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Harbor International
The main advantage of trading using opposite Alliancebernstein and Harbor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Harbor International 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 Harbor International will offset losses from the drop in Harbor International's long position.| Alliancebernstein vs. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities | Alliancebernstein vs. Stone Harbor Emerging |
| Harbor International vs. Alliancebernstein Global High | Harbor International vs. Lgm Risk Managed | Harbor International vs. Intal High Relative | Harbor International vs. Ab Global Risk |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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