Correlation Between AllianceBernstein and Oak Woods
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Oak Woods 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 Oak Woods 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 Oak Woods Acquisition, you can compare the effects of market volatilities on AllianceBernstein and Oak Woods 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 Oak Woods. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Oak Woods.
Diversification Opportunities for AllianceBernstein and Oak Woods
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AllianceBernstein and Oak is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Oak Woods Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Woods Acquisition 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 Oak Woods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Woods Acquisition has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Oak Woods go up and down completely randomly.
Pair Corralation between AllianceBernstein and Oak Woods
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 4.7 times more return on investment than Oak Woods. However, AllianceBernstein is 4.7 times more volatile than Oak Woods Acquisition. It trades about 0.07 of its potential returns per unit of risk. Oak Woods Acquisition is currently generating about 0.02 per unit of risk. If you would invest 3,543 in AllianceBernstein Holding LP on December 30, 2024 and sell it today you would earn a total of 294.00 from holding AllianceBernstein Holding LP or generate 8.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AllianceBernstein Holding LP vs. Oak Woods Acquisition
Performance |
Timeline |
AllianceBernstein |
Oak Woods Acquisition |
AllianceBernstein and Oak Woods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AllianceBernstein and Oak Woods
The main advantage of trading using opposite AllianceBernstein and Oak Woods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Oak Woods 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 Oak Woods will offset losses from the drop in Oak Woods' long position.AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation | AllianceBernstein vs. Carlyle Secured Lending |
Oak Woods vs. Park Electrochemical | Oak Woods vs. Drilling Tools International | Oak Woods vs. Eastman Chemical | Oak Woods vs. Alto Ingredients |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Fundamental Analysis View fundamental data based on most recent published financial statements |