Correlation Between American Beacon and Alliancebernstein
Can any of the company-specific risk be diversified away by investing in both American Beacon 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 American Beacon and Alliancebernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon Sim and Alliancebernstein National Municipal, you can compare the effects of market volatilities on American Beacon 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 American Beacon with a short position of Alliancebernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Alliancebernstein.
Diversification Opportunities for American Beacon and Alliancebernstein
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between American and Alliancebernstein is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon Sim and Alliancebernstein National Mun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliancebernstein and American Beacon 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 American Beacon Sim 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 American Beacon i.e., American Beacon and Alliancebernstein go up and down completely randomly.
Pair Corralation between American Beacon and Alliancebernstein
Assuming the 90 days horizon American Beacon is expected to generate 726.0 times less return on investment than Alliancebernstein. But when comparing it to its historical volatility, American Beacon Sim is 4.4 times less risky than Alliancebernstein. It trades about 0.0 of its potential returns per unit of risk. Alliancebernstein National Municipal is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,128 in Alliancebernstein National Municipal on September 14, 2024 and sell it today you would earn a total of 17.00 from holding Alliancebernstein National Municipal or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Beacon Sim vs. Alliancebernstein National Mun
Performance |
| Timeline |
| American Beacon Sim |
| Alliancebernstein |
American Beacon and Alliancebernstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Alliancebernstein
The main advantage of trading using opposite American Beacon and Alliancebernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon 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.| American Beacon vs. Alliancebernstein National Municipal | American Beacon vs. The National Tax Free | American Beacon vs. Ab Impact Municipal | American Beacon vs. Gamco Global Telecommunications |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |