Correlation Between Alliancebernstein and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Ep Emerging 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 Alliancebernstein and Ep Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein Global Highome and Ep Emerging Markets, you can compare the effects of market volatilities on Alliancebernstein and Ep Emerging 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 Alliancebernstein with a short position of Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Ep Emerging.
Diversification Opportunities for Alliancebernstein and Ep Emerging
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Alliancebernstein and EPASX is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global Higho and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep Emerging Markets and Alliancebernstein 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 Alliancebernstein Global Highome are associated (or correlated) with Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Ep Emerging go up and down completely randomly.
Pair Corralation between Alliancebernstein and Ep Emerging
Assuming the 90 days horizon Alliancebernstein Global Highome is expected to generate 0.23 times more return on investment than Ep Emerging. However, Alliancebernstein Global Highome is 4.4 times less risky than Ep Emerging. It trades about -0.07 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about -0.21 per unit of risk. If you would invest 1,138 in Alliancebernstein Global Highome on October 14, 2024 and sell it today you would lose (8.00) from holding Alliancebernstein Global Highome or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein Global Higho vs. Ep Emerging Markets
Performance |
| Timeline |
| Alliancebernstein |
| Ep Emerging Markets |
Alliancebernstein and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Ep Emerging
The main advantage of trading using opposite Alliancebernstein and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Ep Emerging 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 Ep Emerging will offset losses from the drop in Ep Emerging's long position.| Alliancebernstein vs. Smallcap Fund Fka | Alliancebernstein vs. Needham Small Cap | Alliancebernstein vs. Tax Managed Mid Small | Alliancebernstein vs. Df Dent Small |
| Ep Emerging vs. Rbb Fund Trust | Ep Emerging vs. Touchstone Large Cap | Ep Emerging vs. Ab Global Bond | Ep Emerging vs. Alliancebernstein Global Highome |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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