Correlation Between Alliancebernstein and Oberweis Emerging
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Oberweis Emerging 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 Oberweis Emerging 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 Oberweis Emerging Markets, you can compare the effects of market volatilities on Alliancebernstein and Oberweis Emerging 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 Oberweis Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Oberweis Emerging.
Diversification Opportunities for Alliancebernstein and Oberweis Emerging
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Alliancebernstein and Oberweis is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Oberweis Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis Emerging Markets 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 Oberweis Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis Emerging Markets has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Oberweis Emerging go up and down completely randomly.
Pair Corralation between Alliancebernstein and Oberweis Emerging
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 0.21 times more return on investment than Oberweis Emerging. However, Alliancebernstein Global High is 4.73 times less risky than Oberweis Emerging. It trades about 0.11 of its potential returns per unit of risk. Oberweis Emerging Markets is currently generating about -0.05 per unit of risk. If you would invest 1,036 in Alliancebernstein Global High on September 3, 2024 and sell it today you would earn a total of 65.00 from holding Alliancebernstein Global High or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.4% |
| Values | Daily Returns |
Alliancebernstein Global High vs. Oberweis Emerging Markets
Performance |
| Timeline |
| Alliancebernstein |
| Oberweis Emerging Markets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alliancebernstein and Oberweis Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Oberweis Emerging
The main advantage of trading using opposite Alliancebernstein and Oberweis Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Oberweis Emerging 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 Oberweis Emerging will offset losses from the drop in Oberweis Emerging's long position.| Alliancebernstein vs. Doubleline Yield Opportunities | Alliancebernstein vs. Highland Floating Rate | Alliancebernstein vs. Doubleline Opportunistic Credit | Alliancebernstein vs. Western Asset Emerging |
| Oberweis Emerging vs. Siit High Yield | Oberweis Emerging vs. Goldman Sachs High | Oberweis Emerging vs. Ab High Income | Oberweis Emerging vs. Guggenheim High Yield |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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