Correlation Between AllianceBernstein and Manning Napier

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Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Manning Napier 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 Manning Napier 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 Manning Napier, you can compare the effects of market volatilities on AllianceBernstein and Manning Napier 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 Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Manning Napier.

Diversification Opportunities for AllianceBernstein and Manning Napier

-0.16
  Correlation Coefficient

Good diversification

The 3 months correlation between AllianceBernstein and Manning is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Manning Napier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier 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 Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Manning Napier go up and down completely randomly.

Pair Corralation between AllianceBernstein and Manning Napier

Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to under-perform the Manning Napier. In addition to that, AllianceBernstein is 2.29 times more volatile than Manning Napier. It trades about 0.0 of its total potential returns per unit of risk. Manning Napier is currently generating about 0.04 per unit of volatility. If you would invest  1,246  in Manning Napier on December 29, 2023 and sell it today you would earn a total of  39.00  from holding Manning Napier or generate 3.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy22.47%
ValuesDaily Returns

AllianceBernstein Holding LP  vs.  Manning Napier

 Performance 
       Timeline  
AllianceBernstein 

Risk-Adjusted Performance

12 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in AllianceBernstein Holding LP are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal fundamental drivers, AllianceBernstein sustained solid returns over the last few months and may actually be approaching a breakup point.
Manning Napier 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Manning Napier has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Manning Napier is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

AllianceBernstein and Manning Napier Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AllianceBernstein and Manning Napier

The main advantage of trading using opposite AllianceBernstein and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Manning Napier 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 Manning Napier will offset losses from the drop in Manning Napier's long position.
The idea behind AllianceBernstein Holding LP and Manning Napier 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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