Correlation Between Alliancebernstein and Eventide Healthcare
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Eventide Healthcare 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 Eventide Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein Global High and Eventide Healthcare Life, you can compare the effects of market volatilities on Alliancebernstein and Eventide Healthcare 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 Eventide Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Eventide Healthcare.
Diversification Opportunities for Alliancebernstein and Eventide Healthcare
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Alliancebernstein and Eventide is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Eventide Healthcare Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Healthcare Life 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 High are associated (or correlated) with Eventide Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Healthcare Life has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Eventide Healthcare go up and down completely randomly.
Pair Corralation between Alliancebernstein and Eventide Healthcare
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 0.45 times more return on investment than Eventide Healthcare. However, Alliancebernstein Global High is 2.22 times less risky than Eventide Healthcare. It trades about 0.07 of its potential returns per unit of risk. Eventide Healthcare Life is currently generating about 0.01 per unit of risk. If you would invest 879.00 in Alliancebernstein Global High on September 12, 2024 and sell it today you would earn a total of 208.00 from holding Alliancebernstein Global High or generate 23.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Alliancebernstein Global High vs. Eventide Healthcare Life
Performance |
Timeline |
Alliancebernstein |
Eventide Healthcare Life |
Alliancebernstein and Eventide Healthcare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alliancebernstein and Eventide Healthcare
The main advantage of trading using opposite Alliancebernstein and Eventide Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Eventide Healthcare 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 Eventide Healthcare will offset losses from the drop in Eventide Healthcare's long position.Alliancebernstein vs. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities | Alliancebernstein vs. Stone Harbor Emerging |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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