Correlation Between Alliancebernstein and Pgim Securitized

Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Pgim Securitized 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 Pgim Securitized into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alliancebernstein Global High and Pgim Securitized Credit, you can compare the effects of market volatilities on Alliancebernstein and Pgim Securitized 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 Pgim Securitized. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Pgim Securitized.

Diversification Opportunities for Alliancebernstein and Pgim Securitized

-0.35

Correlation Coefficient

Alliancebernstein  Pgim Securitized

Very good diversification

The 3 months correlation between Alliancebernstein and Pgim is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Pgim Securitized Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Securitized Credit 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 High are associated (or correlated) with Pgim Securitized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Securitized Credit has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Pgim Securitized go up and down completely randomly.

Pair Corralation between Alliancebernstein and Pgim Securitized

Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 4.14 times more return on investment than Pgim Securitized. However, Alliancebernstein is 4.14 times more volatile than Pgim Securitized Credit. It trades about 0.11 of its potential returns per unit of risk. Pgim Securitized Credit is currently generating about 0.26 per unit of risk. If you would invest  893.00  in Alliancebernstein Global High on September 12, 2024 and sell it today you would earn a total of  194.00  from holding Alliancebernstein Global High or generate 21.72% return on investment over 90 days.

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

Alliancebernstein Global High  vs.  Pgim Securitized Credit

Alliancebernstein

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alliancebernstein Global High are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Alliancebernstein is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pgim Securitized Credit

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Securitized Credit are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pgim Securitized is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Alliancebernstein and Pgim Securitized

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

The idea behind Alliancebernstein Global High and Pgim Securitized Credit 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.