Correlation Between Alliancebernstein and Seafarer Overseas
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Seafarer Overseas 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 Seafarer Overseas 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 Seafarer Overseas Growth, you can compare the effects of market volatilities on Alliancebernstein and Seafarer Overseas 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 Seafarer Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Seafarer Overseas.
Diversification Opportunities for Alliancebernstein and Seafarer Overseas
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alliancebernstein and Seafarer is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Seafarer Overseas Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seafarer Overseas Growth 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 Seafarer Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seafarer Overseas Growth has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Seafarer Overseas go up and down completely randomly.
Pair Corralation between Alliancebernstein and Seafarer Overseas
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 0.7 times more return on investment than Seafarer Overseas. However, Alliancebernstein Global High is 1.43 times less risky than Seafarer Overseas. It trades about 0.2 of its potential returns per unit of risk. Seafarer Overseas Growth is currently generating about -0.1 per unit of risk. If you would invest 1,079 in Alliancebernstein Global High on September 3, 2024 and sell it today you would earn a total of 22.00 from holding Alliancebernstein Global High or generate 2.04% 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. Seafarer Overseas Growth
Performance |
| Timeline |
| Alliancebernstein |
| Seafarer Overseas Growth |
Alliancebernstein and Seafarer Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Seafarer Overseas
The main advantage of trading using opposite Alliancebernstein and Seafarer Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Seafarer Overseas 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 Seafarer Overseas will offset losses from the drop in Seafarer Overseas' long position.| Alliancebernstein vs. Doubleline Yield Opportunities | Alliancebernstein vs. Highland Floating Rate | Alliancebernstein vs. Doubleline Opportunistic Credit | Alliancebernstein vs. Western Asset Emerging |
| Seafarer Overseas vs. Western Asset Inflation | Seafarer Overseas vs. Blackrock Inflation Protected | Seafarer Overseas vs. Ab Bond Inflation | Seafarer Overseas vs. Goldman Sachs Managed |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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