Correlation Between Alliancebernstein and Pro Blend
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Pro Blend 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 Pro Blend 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 Pro Blend Extended Term, you can compare the effects of market volatilities on Alliancebernstein and Pro Blend 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 Pro Blend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Pro Blend.
Diversification Opportunities for Alliancebernstein and Pro Blend
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alliancebernstein and Pro is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Pro Blend Extended Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Blend Extended 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 Pro Blend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Blend Extended has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Pro Blend go up and down completely randomly.
Pair Corralation between Alliancebernstein and Pro Blend
Considering the 90-day investment horizon Alliancebernstein Global High is expected to under-perform the Pro Blend. In addition to that, Alliancebernstein is 1.02 times more volatile than Pro Blend Extended Term. It trades about -0.05 of its total potential returns per unit of risk. Pro Blend Extended Term is currently generating about 0.1 per unit of volatility. If you would invest 2,055 in Pro Blend Extended Term on September 12, 2024 and sell it today you would earn a total of 18.00 from holding Pro Blend Extended Term or generate 0.88% 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. Pro Blend Extended Term
Performance |
| Timeline |
| Alliancebernstein |
| Pro Blend Extended |
Alliancebernstein and Pro Blend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Pro Blend
The main advantage of trading using opposite Alliancebernstein and Pro Blend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Pro Blend 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 Pro Blend will offset losses from the drop in Pro Blend's long position.| Alliancebernstein vs. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities | Alliancebernstein vs. Stone Harbor Emerging |
| Pro Blend vs. Lord Abbett Convertible | Pro Blend vs. Absolute Convertible Arbitrage | Pro Blend vs. Putnam Convertible Incm Gwth | Pro Blend vs. Fidelity Sai Convertible |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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