Correlation Between AllianceBernstein and Athena Technology

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

Diversification Opportunities for AllianceBernstein and Athena Technology

0.0

Correlation Coefficient

AllianceBernstein  Athena Technology

Pay attention - limited upside

The 3 months correlation between AllianceBernstein and Athena is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Athena Technology Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athena Technology 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 Athena Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athena Technology has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Athena Technology go up and down completely randomly.

Pair Corralation between AllianceBernstein and Athena Technology

Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to generate 0.11 times more return on investment than Athena Technology. However, AllianceBernstein Holding LP is 9.07 times less risky than Athena Technology. It trades about -0.03 of its potential returns per unit of risk. Athena Technology Acquisition is currently generating about -0.15 per unit of risk. If you would invest  3,694  in AllianceBernstein Holding LP on September 16, 2024 and sell it today you would lose (99.00) from holding AllianceBernstein Holding LP or give up 2.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AllianceBernstein Holding LP  vs.  Athena Technology Acquisition

AllianceBernstein

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AllianceBernstein Holding LP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile fundamental drivers, AllianceBernstein may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Athena Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Athena Technology Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with AllianceBernstein and Athena Technology

The main advantage of trading using opposite AllianceBernstein and Athena Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Athena Technology 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 Athena Technology will offset losses from the drop in Athena Technology's long position.

The idea behind AllianceBernstein Holding LP and Athena Technology Acquisition 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.