Correlation Between Alliancebernstein and Federated Prudent
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Federated Prudent 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 Federated Prudent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein Global Highome and Federated Prudent Bear, you can compare the effects of market volatilities on Alliancebernstein and Federated Prudent 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 Federated Prudent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Federated Prudent.
Diversification Opportunities for Alliancebernstein and Federated Prudent
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alliancebernstein and Federated is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global Higho and Federated Prudent Bear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Prudent Bear 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 Highome are associated (or correlated) with Federated Prudent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Prudent Bear has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Federated Prudent go up and down completely randomly.
Pair Corralation between Alliancebernstein and Federated Prudent
Assuming the 90 days horizon Alliancebernstein Global Highome is expected to generate 0.28 times more return on investment than Federated Prudent. However, Alliancebernstein Global Highome is 3.61 times less risky than Federated Prudent. It trades about 0.19 of its potential returns per unit of risk. Federated Prudent Bear is currently generating about -0.22 per unit of risk. If you would invest 1,123 in Alliancebernstein Global Highome on May 27, 2025 and sell it today you would earn a total of 23.00 from holding Alliancebernstein Global Highome or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein Global Higho vs. Federated Prudent Bear
Performance |
| Timeline |
| Alliancebernstein |
| Federated Prudent Bear |
Alliancebernstein and Federated Prudent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Federated Prudent
The main advantage of trading using opposite Alliancebernstein and Federated Prudent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Federated Prudent 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 Federated Prudent will offset losses from the drop in Federated Prudent's long position.| Alliancebernstein vs. Doubleline Emerging Markets | Alliancebernstein vs. Lord Abbett Diversified | Alliancebernstein vs. Sa Emerging Markets | Alliancebernstein vs. Prudential Emerging Markets |
| Federated Prudent vs. Morningstar Municipal Bond | Federated Prudent vs. Prudential California Muni | Federated Prudent vs. John Hancock Municipal | Federated Prudent vs. Old Westbury Municipal |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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