Correlation Between AllianceBernstein and Bain Capital
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Bain Capital 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 Bain Capital 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 Bain Capital Specialty, you can compare the effects of market volatilities on AllianceBernstein and Bain Capital 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 Bain Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Bain Capital.
Diversification Opportunities for AllianceBernstein and Bain Capital
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AllianceBernstein and Bain is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Bain Capital Specialty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bain Capital Specialty 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 Bain Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bain Capital Specialty has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Bain Capital go up and down completely randomly.
Pair Corralation between AllianceBernstein and Bain Capital
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to under-perform the Bain Capital. In addition to that, AllianceBernstein is 1.94 times more volatile than Bain Capital Specialty. It trades about -0.15 of its total potential returns per unit of risk. Bain Capital Specialty is currently generating about 0.43 per unit of volatility. If you would invest 1,555 in Bain Capital Specialty on February 4, 2024 and sell it today you would earn a total of 106.00 from holding Bain Capital Specialty or generate 6.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.65% |
Values | Daily Returns |
AllianceBernstein Holding LP vs. Bain Capital Specialty
Performance |
Timeline |
AllianceBernstein |
Bain Capital Specialty |
AllianceBernstein and Bain Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AllianceBernstein and Bain Capital
The main advantage of trading using opposite AllianceBernstein and Bain Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Bain Capital 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 Bain Capital will offset losses from the drop in Bain Capital's long position.AllianceBernstein vs. Mercurity Fintech Holding | AllianceBernstein vs. Zhong Yang Financial | AllianceBernstein vs. SAITECH Global | AllianceBernstein vs. Applied Blockchain |
Bain Capital vs. Mercurity Fintech Holding | Bain Capital vs. Zhong Yang Financial | Bain Capital vs. SAITECH Global | Bain Capital vs. Applied Blockchain |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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