Correlation Between Alliancebernstein and Voya Intermediate
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Voya Intermediate 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 Voya Intermediate 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 Voya Intermediate Bond, you can compare the effects of market volatilities on Alliancebernstein and Voya Intermediate 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 Voya Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Voya Intermediate.
Diversification Opportunities for Alliancebernstein and Voya Intermediate
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alliancebernstein and Voya is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Voya Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Intermediate 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 Voya Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Intermediate Bond has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Voya Intermediate go up and down completely randomly.
Pair Corralation between Alliancebernstein and Voya Intermediate
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 1.42 times more return on investment than Voya Intermediate. However, Alliancebernstein is 1.42 times more volatile than Voya Intermediate Bond. It trades about 0.11 of its potential returns per unit of risk. Voya Intermediate Bond is currently generating about 0.07 per unit of risk. If you would invest 893.00 in Alliancebernstein Global High on September 12, 2024 and sell it today you would earn a total of 194.00 from holding Alliancebernstein Global High or generate 21.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Alliancebernstein Global High vs. Voya Intermediate Bond
Performance |
| Timeline |
| Alliancebernstein |
| Voya Intermediate Bond |
Alliancebernstein and Voya Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Voya Intermediate
The main advantage of trading using opposite Alliancebernstein and Voya Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Voya Intermediate 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 Voya Intermediate will offset losses from the drop in Voya Intermediate's long position.| Alliancebernstein vs. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities | Alliancebernstein vs. Stone Harbor Emerging |
| Voya Intermediate vs. Ab High Income | Voya Intermediate vs. Siit High Yield | Voya Intermediate vs. Ab Global Risk | Voya Intermediate 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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