Correlation Between Alliancebernstein and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Jhancock 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 Jhancock 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 Jhancock Global Equity, you can compare the effects of market volatilities on Alliancebernstein and Jhancock 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 Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Jhancock Global.
Diversification Opportunities for Alliancebernstein and Jhancock Global
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alliancebernstein and Jhancock is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Jhancock Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Global Equity 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 Jhancock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Global Equity has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Jhancock Global go up and down completely randomly.
Pair Corralation between Alliancebernstein and Jhancock Global
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 0.91 times more return on investment than Jhancock Global. However, Alliancebernstein Global High is 1.1 times less risky than Jhancock Global. It trades about 0.07 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.06 per unit of risk. If you would invest 1,077 in Alliancebernstein Global High on September 14, 2024 and sell it today you would earn a total of 6.00 from holding Alliancebernstein Global High or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein Global High vs. Jhancock Global Equity
Performance |
| Timeline |
| Alliancebernstein |
| Jhancock Global Equity |
Alliancebernstein and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Jhancock Global
The main advantage of trading using opposite Alliancebernstein and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Jhancock 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 Jhancock Global will offset losses from the drop in Jhancock Global's long position.| Alliancebernstein vs. Western Asset High | Alliancebernstein vs. Blackrock Debt Strategies | Alliancebernstein vs. Western Asset Diversified | Alliancebernstein vs. Western Asset Global |
| Jhancock Global vs. Morningstar Global Income | Jhancock Global vs. Franklin Mutual Global | Jhancock Global vs. Ab Global Real |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |