Correlation Between Performance Trust and Alliancebernstein
Can any of the company-specific risk be diversified away by investing in both Performance Trust and Alliancebernstein 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 Performance Trust and Alliancebernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Trust Municipal and Alliancebernstein National Municipalome, you can compare the effects of market volatilities on Performance Trust and Alliancebernstein 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 Performance Trust with a short position of Alliancebernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Trust and Alliancebernstein.
Diversification Opportunities for Performance Trust and Alliancebernstein
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Performance and Alliancebernstein is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Performance Trust Municipal and Alliancebernstein National Mun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliancebernstein and Performance Trust 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 Performance Trust Municipal are associated (or correlated) with Alliancebernstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliancebernstein has no effect on the direction of Performance Trust i.e., Performance Trust and Alliancebernstein go up and down completely randomly.
Pair Corralation between Performance Trust and Alliancebernstein
Assuming the 90 days horizon Performance Trust Municipal is expected to generate 0.49 times more return on investment than Alliancebernstein. However, Performance Trust Municipal is 2.03 times less risky than Alliancebernstein. It trades about 0.33 of its potential returns per unit of risk. Alliancebernstein National Municipalome is currently generating about 0.15 per unit of risk. If you would invest 2,214 in Performance Trust Municipal on September 9, 2025 and sell it today you would earn a total of 63.00 from holding Performance Trust Municipal or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performance Trust Municipal vs. Alliancebernstein National Mun
Performance |
| Timeline |
| Performance Trust |
| Alliancebernstein |
Performance Trust and Alliancebernstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Trust and Alliancebernstein
The main advantage of trading using opposite Performance Trust and Alliancebernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Trust position performs unexpectedly, Alliancebernstein 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 Alliancebernstein will offset losses from the drop in Alliancebernstein's long position.| Performance Trust vs. Performance Trust Municipal | Performance Trust vs. Dreyfus Intermediate Municipal | Performance Trust vs. Core Bond Series | Performance Trust vs. Pioneer Amt Free Municipal |
| Alliancebernstein vs. Federated Hermes Conservative | Alliancebernstein vs. Wells Fargo Diversified | Alliancebernstein vs. American Funds Conservative | Alliancebernstein vs. Wilmington Diversified Income |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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