Correlation Between Alliancebernstein and Jhancock New
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Jhancock New 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 Jhancock New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein National Municipal and Jhancock New Opportunities, you can compare the effects of market volatilities on Alliancebernstein and Jhancock New 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 Jhancock New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Jhancock New.
Diversification Opportunities for Alliancebernstein and Jhancock New
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alliancebernstein and Jhancock is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Jhancock New Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock New Opportu 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 National Municipal are associated (or correlated) with Jhancock New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock New Opportu has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Jhancock New go up and down completely randomly.
Pair Corralation between Alliancebernstein and Jhancock New
Considering the 90-day investment horizon Alliancebernstein National Municipal is expected to generate 0.65 times more return on investment than Jhancock New. However, Alliancebernstein National Municipal is 1.54 times less risky than Jhancock New. It trades about -0.23 of its potential returns per unit of risk. Jhancock New Opportunities is currently generating about -0.47 per unit of risk. If you would invest 1,126 in Alliancebernstein National Municipal on September 24, 2024 and sell it today you would lose (37.00) from holding Alliancebernstein National Municipal or give up 3.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Alliancebernstein National Mun vs. Jhancock New Opportunities
Performance |
Timeline |
Alliancebernstein |
Jhancock New Opportu |
Alliancebernstein and Jhancock New Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alliancebernstein and Jhancock New
The main advantage of trading using opposite Alliancebernstein and Jhancock New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Jhancock New 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 Jhancock New will offset losses from the drop in Jhancock New's long position.Alliancebernstein vs. Eaton Vance Short | Alliancebernstein vs. Allianzgi Diversified Income | Alliancebernstein vs. Ares Dynamic Credit | Alliancebernstein vs. DWS Municipal Income |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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