Correlation Between Alliancebernstein and Doubleline Floating

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

By analyzing existing cross correlation between Alliancebernstein National Municipalome and Doubleline Floating Rate, you can compare the effects of market volatilities on Alliancebernstein and Doubleline Floating 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 Doubleline Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Doubleline Floating.

Diversification Opportunities for Alliancebernstein and Doubleline Floating

-0.17

Correlation Coefficient

Alliancebernstein  Doubleline Floating

Good diversification

The 3 months correlation between Alliancebernstein and Doubleline is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Doubleline Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Floating Rate 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 Municipalome are associated (or correlated) with Doubleline Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Floating Rate has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Doubleline Floating go up and down completely randomly.

Pair Corralation between Alliancebernstein and Doubleline Floating

Assuming the 90 days horizon Alliancebernstein National Municipalome is expected to under-perform the Doubleline Floating. In addition to that, Alliancebernstein is 3.28 times more volatile than Doubleline Floating Rate. It trades about -0.26 of its total potential returns per unit of risk. Doubleline Floating Rate is currently generating about -0.06 per unit of volatility. If you would invest  906.00  in Doubleline Floating Rate on October 11, 2024 and sell it today you would lose (2.00) from holding Doubleline Floating Rate or give up 0.22% of portfolio value over 90 days.

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

Alliancebernstein National Mun  vs.  Doubleline Floating Rate

Alliancebernstein

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alliancebernstein National Municipalome has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly 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.

Doubleline Floating Rate

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Floating Rate are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Doubleline Floating is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Alliancebernstein and Doubleline Floating

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

The idea behind Alliancebernstein National Municipalome and Doubleline Floating Rate 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.