Correlation Between Barings Global and Alliancebernstein
Can any of the company-specific risk be diversified away by investing in both Barings Global 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 Global and Alliancebernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Alliancebernstein Global High, you can compare the effects of market volatilities on Barings Global 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 Global with a short position of Alliancebernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Alliancebernstein.
Diversification Opportunities for Barings Global and Alliancebernstein
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barings and Alliancebernstein is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Alliancebernstein Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliancebernstein and Barings Global 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 Global Floating 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 Global i.e., Barings Global and Alliancebernstein go up and down completely randomly.
Pair Corralation between Barings Global and Alliancebernstein
Assuming the 90 days horizon Barings Global is expected to generate 5.97 times less return on investment than Alliancebernstein. But when comparing it to its historical volatility, Barings Global Floating is 8.93 times less risky than Alliancebernstein. It trades about 0.31 of its potential returns per unit of risk. Alliancebernstein Global High is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,079 in Alliancebernstein Global High on September 4, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. Alliancebernstein Global High
Performance |
| Timeline |
| Barings Global Floating |
| Alliancebernstein |
Barings Global and Alliancebernstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Alliancebernstein
The main advantage of trading using opposite Barings Global and Alliancebernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global 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 Global vs. Dreyfusstandish Global Fixed | Barings Global vs. Morningstar Global Income | Barings Global vs. Franklin Mutual Global | Barings Global vs. Ab Global Real |
| Alliancebernstein vs. Doubleline Yield Opportunities | Alliancebernstein vs. Highland Floating Rate | Alliancebernstein vs. Doubleline Opportunistic Credit | Alliancebernstein vs. Western Asset Emerging |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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