Correlation Between Saat Servative and Alliancebernstein
Can any of the company-specific risk be diversified away by investing in both Saat Servative 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 Saat Servative and Alliancebernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Servative Strategy and Alliancebernstein National Municipal, you can compare the effects of market volatilities on Saat Servative 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 Saat Servative with a short position of Alliancebernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Servative and Alliancebernstein.
Diversification Opportunities for Saat Servative and Alliancebernstein
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saat and Alliancebernstein is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Saat Servative Strategy and Alliancebernstein National Mun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliancebernstein and Saat Servative 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 Saat Servative Strategy 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 Saat Servative i.e., Saat Servative and Alliancebernstein go up and down completely randomly.
Pair Corralation between Saat Servative and Alliancebernstein
Assuming the 90 days horizon Saat Servative is expected to generate 1.41 times less return on investment than Alliancebernstein. But when comparing it to its historical volatility, Saat Servative Strategy is 3.21 times less risky than Alliancebernstein. It trades about 0.12 of its potential returns per unit of risk. Alliancebernstein National Municipal is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,018 in Alliancebernstein National Municipal on September 12, 2024 and sell it today you would earn a total of 124.00 from holding Alliancebernstein National Municipal or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Servative Strategy vs. Alliancebernstein National Mun
Performance |
| Timeline |
| Saat Servative Strategy |
| Alliancebernstein |
Saat Servative and Alliancebernstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Servative and Alliancebernstein
The main advantage of trading using opposite Saat Servative and Alliancebernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Servative 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.| Saat Servative vs. Alliancebernstein National Municipal | Saat Servative vs. Pace High Yield | Saat Servative vs. Doubleline Yield Opportunities | Saat Servative vs. Ambrus Core Bond |
| Alliancebernstein vs. Cornerstone Strategic Value | Alliancebernstein vs. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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