Correlation Between AllianceBernstein and Eaton Vance

Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Eaton Vance 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 Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AllianceBernstein Holding LP and Eaton Vance California, you can compare the effects of market volatilities on AllianceBernstein and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Eaton Vance.

Diversification Opportunities for AllianceBernstein and Eaton Vance

-0.68

Correlation Coefficient

AllianceBernstein  Eaton Vance

Excellent diversification

The 3 months correlation between AllianceBernstein and Eaton is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Eaton Vance California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance California 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 Holding LP are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance California has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Eaton Vance go up and down completely randomly.

Pair Corralation between AllianceBernstein and Eaton Vance

Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 2.38 times more return on investment than Eaton Vance. However, AllianceBernstein is 2.38 times more volatile than Eaton Vance California. It trades about 0.08 of its potential returns per unit of risk. Eaton Vance California is currently generating about 0.0 per unit of risk. If you would invest  3,173  in AllianceBernstein Holding LP on September 15, 2024 and sell it today you would earn a total of  422.00  from holding AllianceBernstein Holding LP or generate 13.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

AllianceBernstein Holding LP  vs.  Eaton Vance California

AllianceBernstein

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AllianceBernstein Holding LP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile fundamental drivers, AllianceBernstein may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Eaton Vance California

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eaton Vance California has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Eaton Vance is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with AllianceBernstein and Eaton Vance

The main advantage of trading using opposite AllianceBernstein and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.

The idea behind AllianceBernstein Holding LP and Eaton Vance California pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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.