Correlation Between Alliancebernstein and Jpmorgan Small
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Jpmorgan Small 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 Jpmorgan Small 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 Jpmorgan Small Cap, you can compare the effects of market volatilities on Alliancebernstein and Jpmorgan Small 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 Jpmorgan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Jpmorgan Small.
Diversification Opportunities for Alliancebernstein and Jpmorgan Small
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alliancebernstein and Jpmorgan is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Jpmorgan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Small Cap 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 Jpmorgan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Small Cap has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Jpmorgan Small go up and down completely randomly.
Pair Corralation between Alliancebernstein and Jpmorgan Small
Considering the 90-day investment horizon Alliancebernstein is expected to generate 1.22 times less return on investment than Jpmorgan Small. But when comparing it to its historical volatility, Alliancebernstein Global High is 2.38 times less risky than Jpmorgan Small. It trades about 0.11 of its potential returns per unit of risk. Jpmorgan Small Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 870.00 in Jpmorgan Small Cap on September 12, 2024 and sell it today you would earn a total of 212.00 from holding Jpmorgan Small Cap or generate 24.37% 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. Jpmorgan Small Cap
Performance |
| Timeline |
| Alliancebernstein |
| Jpmorgan Small Cap |
Alliancebernstein and Jpmorgan Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Jpmorgan Small
The main advantage of trading using opposite Alliancebernstein and Jpmorgan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Jpmorgan Small 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 Jpmorgan Small will offset losses from the drop in Jpmorgan Small's long position.| Alliancebernstein vs. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities | Alliancebernstein vs. Stone Harbor Emerging |
| Jpmorgan Small vs. Ab Global Bond | Jpmorgan Small vs. 361 Global Longshort | Jpmorgan Small vs. Kinetics Global Fund | Jpmorgan Small vs. Alliancebernstein Global High |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |