Correlation Between Touchstone Premium and Alliancebernstein
Can any of the company-specific risk be diversified away by investing in both Touchstone Premium 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 Touchstone Premium and Alliancebernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Premium Yield and Alliancebernstein National Municipal, you can compare the effects of market volatilities on Touchstone Premium 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 Touchstone Premium with a short position of Alliancebernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Premium and Alliancebernstein.
Diversification Opportunities for Touchstone Premium and Alliancebernstein
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Touchstone and Alliancebernstein is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Premium Yield and Alliancebernstein National Mun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliancebernstein and Touchstone Premium 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 Touchstone Premium Yield 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 Touchstone Premium i.e., Touchstone Premium and Alliancebernstein go up and down completely randomly.
Pair Corralation between Touchstone Premium and Alliancebernstein
Assuming the 90 days horizon Touchstone Premium is expected to generate 1.6 times less return on investment than Alliancebernstein. In addition to that, Touchstone Premium is 1.07 times more volatile than Alliancebernstein National Municipal. It trades about 0.01 of its total potential returns per unit of risk. Alliancebernstein National Municipal is currently generating about 0.02 per unit of volatility. If you would invest 1,146 in Alliancebernstein National Municipal on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Alliancebernstein National Municipal or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Premium Yield vs. Alliancebernstein National Mun
Performance |
| Timeline |
| Touchstone Premium Yield |
| Alliancebernstein |
Touchstone Premium and Alliancebernstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Premium and Alliancebernstein
The main advantage of trading using opposite Touchstone Premium and Alliancebernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Premium 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.| Touchstone Premium vs. Scharf Global Opportunity | Touchstone Premium vs. Commonwealth Global Fund | Touchstone Premium vs. Artisan Global Unconstrained | Touchstone Premium vs. Investec Global Franchise |
| 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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