Correlation Between Alliancebernstein and Hartford Small
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Hartford Small 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 Hartford Small 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 The Hartford Small, you can compare the effects of market volatilities on Alliancebernstein and Hartford Small 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 Hartford Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Hartford Small.
Diversification Opportunities for Alliancebernstein and Hartford Small
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alliancebernstein and Hartford is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and The Hartford Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small 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 Hartford Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Small has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Hartford Small go up and down completely randomly.
Pair Corralation between Alliancebernstein and Hartford Small
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 0.47 times more return on investment than Hartford Small. However, Alliancebernstein Global High is 2.13 times less risky than Hartford Small. It trades about 0.3 of its potential returns per unit of risk. The Hartford Small is currently generating about 0.12 per unit of risk. If you would invest 1,051 in Alliancebernstein Global High on October 21, 2024 and sell it today you would earn a total of 26.00 from holding Alliancebernstein Global High or generate 2.47% 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. The Hartford Small
Performance |
| Timeline |
| Alliancebernstein |
| Hartford Small |
Alliancebernstein and Hartford Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Hartford Small
The main advantage of trading using opposite Alliancebernstein and Hartford Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Hartford Small 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 Hartford Small will offset losses from the drop in Hartford Small's long position.| Alliancebernstein vs. Doubleline Yield Opportunities | Alliancebernstein vs. Highland Floating Rate | Alliancebernstein vs. Doubleline Opportunistic Credit | Alliancebernstein vs. Western Asset Emerging |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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