Correlation Between AllianceBernstein and Lionsgate Studios

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Lionsgate Studios 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 Lionsgate Studios 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 Lionsgate Studios Corp, you can compare the effects of market volatilities on AllianceBernstein and Lionsgate Studios 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 Lionsgate Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Lionsgate Studios.

Diversification Opportunities for AllianceBernstein and Lionsgate Studios

-0.52
  Correlation Coefficient

Excellent diversification

The 3 months correlation between AllianceBernstein and Lionsgate is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Lionsgate Studios Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lionsgate Studios Corp 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 Lionsgate Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lionsgate Studios Corp has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Lionsgate Studios go up and down completely randomly.

Pair Corralation between AllianceBernstein and Lionsgate Studios

Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 0.72 times more return on investment than Lionsgate Studios. However, AllianceBernstein Holding LP is 1.39 times less risky than Lionsgate Studios. It trades about 0.07 of its potential returns per unit of risk. Lionsgate Studios Corp is currently generating about 0.04 per unit of risk. If you would invest  3,381  in AllianceBernstein Holding LP on September 17, 2024 and sell it today you would earn a total of  189.50  from holding AllianceBernstein Holding LP or generate 5.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

AllianceBernstein Holding LP  vs.  Lionsgate Studios Corp

 Performance 
       Timeline  
AllianceBernstein 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
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 strong fundamental drivers, AllianceBernstein is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Lionsgate Studios Corp 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Lionsgate Studios Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Lionsgate Studios is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

AllianceBernstein and Lionsgate Studios Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AllianceBernstein and Lionsgate Studios

The main advantage of trading using opposite AllianceBernstein and Lionsgate Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Lionsgate Studios 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 Lionsgate Studios will offset losses from the drop in Lionsgate Studios' long position.
The idea behind AllianceBernstein Holding LP and Lionsgate Studios Corp 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Complementary Tools

Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Content Syndication
Quickly integrate customizable finance content to your own investment portal
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios