Correlation Between Alliancebernstein and American Funds
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and American Funds 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 American Funds 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 American Funds 2050, you can compare the effects of market volatilities on Alliancebernstein and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and American Funds.
Diversification Opportunities for Alliancebernstein and American Funds
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Alliancebernstein and American is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and American Funds 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2050 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2050 has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and American Funds go up and down completely randomly.
Pair Corralation between Alliancebernstein and American Funds
Considering the 90-day investment horizon Alliancebernstein is expected to generate 1.47 times less return on investment than American Funds. But when comparing it to its historical volatility, Alliancebernstein Global High is 1.2 times less risky than American Funds. It trades about 0.2 of its potential returns per unit of risk. American Funds 2050 is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,056 in American Funds 2050 on September 3, 2024 and sell it today you would earn a total of 62.00 from holding American Funds 2050 or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein Global High vs. American Funds 2050
Performance |
| Timeline |
| Alliancebernstein |
| American Funds 2050 |
Alliancebernstein and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and American Funds
The main advantage of trading using opposite Alliancebernstein and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Alliancebernstein vs. Doubleline Yield Opportunities | Alliancebernstein vs. Highland Floating Rate | Alliancebernstein vs. Doubleline Opportunistic Credit | Alliancebernstein vs. Western Asset Emerging |
| American Funds vs. Qs Global Equity | American Funds vs. Legg Mason Global | American Funds vs. Alliancebernstein Global High | American Funds vs. Dreyfusstandish Global Fixed |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |