Correlation Between Alliancebernstein and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Loomis Sayles 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 Loomis Sayles 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 Loomis Sayles Inflation, you can compare the effects of market volatilities on Alliancebernstein and Loomis Sayles 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 Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Loomis Sayles.
Diversification Opportunities for Alliancebernstein and Loomis Sayles
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alliancebernstein and Loomis is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Loomis Sayles Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Inflation 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 Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Inflation has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Loomis Sayles go up and down completely randomly.
Pair Corralation between Alliancebernstein and Loomis Sayles
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 1.83 times more return on investment than Loomis Sayles. However, Alliancebernstein is 1.83 times more volatile than Loomis Sayles Inflation. It trades about 0.09 of its potential returns per unit of risk. Loomis Sayles Inflation is currently generating about 0.04 per unit of risk. If you would invest 817.00 in Alliancebernstein Global High on September 13, 2024 and sell it today you would earn a total of 272.00 from holding Alliancebernstein Global High or generate 33.29% 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. Loomis Sayles Inflation
Performance |
| Timeline |
| Alliancebernstein |
| Loomis Sayles Inflation |
Alliancebernstein and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Loomis Sayles
The main advantage of trading using opposite Alliancebernstein and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Alliancebernstein vs. Doubleline Yield Opportunities | Alliancebernstein vs. Highland Floating Rate | Alliancebernstein vs. Doubleline Opportunistic Credit | Alliancebernstein vs. Western Asset Emerging |
| Loomis Sayles vs. Mirova Global Green | Loomis Sayles vs. Jhancock Global Equity | Loomis Sayles vs. Alliancebernstein Global High | Loomis Sayles vs. Artisan Global Unconstrained |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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