Correlation Between Barings Emerging and Alliancebernstein
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Alliancebernstein 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 Barings Emerging and Alliancebernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Emerging Markets and Alliancebernstein National Municipal, you can compare the effects of market volatilities on Barings Emerging and Alliancebernstein 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 Barings Emerging with a short position of Alliancebernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Alliancebernstein.
Diversification Opportunities for Barings Emerging and Alliancebernstein
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Barings and Alliancebernstein is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Alliancebernstein National Mun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliancebernstein and Barings Emerging 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 Barings Emerging Markets are associated (or correlated) with Alliancebernstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliancebernstein has no effect on the direction of Barings Emerging i.e., Barings Emerging and Alliancebernstein go up and down completely randomly.
Pair Corralation between Barings Emerging and Alliancebernstein
Assuming the 90 days horizon Barings Emerging is expected to generate 2.26 times less return on investment than Alliancebernstein. But when comparing it to its historical volatility, Barings Emerging Markets is 1.52 times less risky than Alliancebernstein. It trades about 0.08 of its potential returns per unit of risk. Alliancebernstein National Municipal is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,062 in Alliancebernstein National Municipal on September 2, 2024 and sell it today you would earn a total of 87.00 from holding Alliancebernstein National Municipal or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Alliancebernstein National Mun
Performance |
| Timeline |
| Barings Emerging Markets |
| Alliancebernstein |
Barings Emerging and Alliancebernstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Alliancebernstein
The main advantage of trading using opposite Barings Emerging and Alliancebernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Alliancebernstein 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 Alliancebernstein will offset losses from the drop in Alliancebernstein's long position.| Barings Emerging vs. Vy Goldman Sachs | Barings Emerging vs. Oppenheimer Gold Special | Barings Emerging vs. Gabelli Gold Fund | Barings Emerging vs. James Balanced Golden |
| Alliancebernstein vs. Eaton Vance Short | Alliancebernstein vs. Allianzgi Diversified Income | Alliancebernstein vs. Ares Dynamic Credit | Alliancebernstein vs. DWS Municipal Income |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stocks Directory Find actively traded stocks across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |