Correlation Between Carlyle Secured and AllianceBernstein
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured 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 Carlyle Secured and AllianceBernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Secured Lending and AllianceBernstein Holding LP, you can compare the effects of market volatilities on Carlyle Secured 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 Carlyle Secured with a short position of AllianceBernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and AllianceBernstein.
Diversification Opportunities for Carlyle Secured and AllianceBernstein
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Carlyle and AllianceBernstein is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and AllianceBernstein Holding LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllianceBernstein and Carlyle Secured 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 Carlyle Secured Lending 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 Carlyle Secured i.e., Carlyle Secured and AllianceBernstein go up and down completely randomly.
Pair Corralation between Carlyle Secured and AllianceBernstein
Given the investment horizon of 90 days Carlyle Secured is expected to generate 4.44 times less return on investment than AllianceBernstein. But when comparing it to its historical volatility, Carlyle Secured Lending is 1.21 times less risky than AllianceBernstein. It trades about 0.02 of its potential returns per unit of risk. AllianceBernstein Holding LP is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,270 in AllianceBernstein Holding LP on September 1, 2024 and sell it today you would earn a total of 357.00 from holding AllianceBernstein Holding LP or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. AllianceBernstein Holding LP
Performance |
| Timeline |
| Carlyle Secured Lending |
| AllianceBernstein |
Carlyle Secured and AllianceBernstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and AllianceBernstein
The main advantage of trading using opposite Carlyle Secured and AllianceBernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured 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.| Carlyle Secured vs. Visa Class A | Carlyle Secured vs. Diamond Hill Investment | Carlyle Secured vs. Distoken Acquisition | Carlyle Secured vs. Associated Capital Group |
| AllianceBernstein vs. Visa Class A | AllianceBernstein vs. Diamond Hill Investment | AllianceBernstein vs. Distoken Acquisition | AllianceBernstein vs. Associated Capital Group |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |