Correlation Between Alliancebernstein and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Natixis Oakmark 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 Natixis Oakmark 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 Natixis Oakmark Fund, you can compare the effects of market volatilities on Alliancebernstein and Natixis Oakmark 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 Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Natixis Oakmark.
Diversification Opportunities for Alliancebernstein and Natixis Oakmark
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alliancebernstein and Natixis is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Natixis Oakmark Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark 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 Natixis Oakmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Oakmark has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Alliancebernstein and Natixis Oakmark
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 0.61 times more return on investment than Natixis Oakmark. However, Alliancebernstein Global High is 1.63 times less risky than Natixis Oakmark. It trades about 0.08 of its potential returns per unit of risk. Natixis Oakmark Fund is currently generating about 0.04 per unit of risk. If you would invest 839.00 in Alliancebernstein Global High on September 3, 2024 and sell it today you would earn a total of 262.00 from holding Alliancebernstein Global High or generate 31.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein Global High vs. Natixis Oakmark Fund
Performance |
| Timeline |
| Alliancebernstein |
| Natixis Oakmark |
Alliancebernstein and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Natixis Oakmark
The main advantage of trading using opposite Alliancebernstein and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Natixis Oakmark 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 Natixis Oakmark will offset losses from the drop in Natixis Oakmark's long position.| Alliancebernstein vs. Doubleline Yield Opportunities | Alliancebernstein vs. Highland Floating Rate | Alliancebernstein vs. Doubleline Opportunistic Credit | Alliancebernstein vs. Western Asset Emerging |
| Natixis Oakmark vs. Artisan Global Unconstrained | Natixis Oakmark vs. Alliancebernstein Global High | Natixis Oakmark vs. Ab Global Risk | Natixis Oakmark vs. Mirova Global Green |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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