Correlation Between AllianceBernstein and Moelis
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Moelis 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 Moelis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AllianceBernstein Holding LP and Moelis Co, you can compare the effects of market volatilities on AllianceBernstein and Moelis 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 Moelis. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Moelis.
Diversification Opportunities for AllianceBernstein and Moelis
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AllianceBernstein and Moelis is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Moelis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moelis 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 Holding LP are associated (or correlated) with Moelis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moelis has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Moelis go up and down completely randomly.
Pair Corralation between AllianceBernstein and Moelis
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 0.75 times more return on investment than Moelis. However, AllianceBernstein Holding LP is 1.33 times less risky than Moelis. It trades about -0.09 of its potential returns per unit of risk. Moelis Co is currently generating about -0.09 per unit of risk. If you would invest 3,348 in AllianceBernstein Holding LP on January 18, 2024 and sell it today you would lose (103.00) from holding AllianceBernstein Holding LP or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. Moelis Co
Performance |
| Timeline |
| AllianceBernstein |
| Moelis |
AllianceBernstein and Moelis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Moelis
The main advantage of trading using opposite AllianceBernstein and Moelis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Moelis 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 Moelis will offset losses from the drop in Moelis' long position.| AllianceBernstein vs. Gladstone Investment | AllianceBernstein vs. Stellus Capital Investment | AllianceBernstein vs. PennantPark Floating Rate | AllianceBernstein vs. Hercules Capital |
| Moelis vs. Scully Royalty | Moelis vs. Oppenheimer Holdings | Moelis vs. Stonex Group | Moelis vs. Mercurity Fintech Holding |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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