Correlation Between NorthView Acquisition and AllianceBernstein

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

By analyzing existing cross correlation between NorthView Acquisition and AllianceBernstein Holding LP, you can compare the effects of market volatilities on NorthView Acquisition and AllianceBernstein 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 NorthView Acquisition with a short position of AllianceBernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of NorthView Acquisition and AllianceBernstein.

Diversification Opportunities for NorthView Acquisition and AllianceBernstein

-0.14

Correlation Coefficient

NorthView Acquisition  AllianceBernstein

Good diversification

The 3 months correlation between NorthView and AllianceBernstein is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding NorthView Acquisition and AllianceBernstein Holding LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllianceBernstein and NorthView Acquisition 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 NorthView Acquisition are associated (or correlated) with AllianceBernstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AllianceBernstein has no effect on the direction of NorthView Acquisition i.e., NorthView Acquisition and AllianceBernstein go up and down completely randomly.

Pair Corralation between NorthView Acquisition and AllianceBernstein

Assuming the 90 days horizon NorthView Acquisition is expected to under-perform the AllianceBernstein. In addition to that, NorthView Acquisition is 13.63 times more volatile than AllianceBernstein Holding LP. It trades about -0.02 of its total potential returns per unit of risk. AllianceBernstein Holding LP is currently generating about 0.09 per unit of volatility. If you would invest  3,417  in AllianceBernstein Holding LP on September 29, 2024 and sell it today you would earn a total of  307.00  from holding AllianceBernstein Holding LP or generate 8.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	66.67%
Values	Daily Returns

NorthView Acquisition  vs.  AllianceBernstein Holding LP

NorthView Acquisition

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days NorthView Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

AllianceBernstein

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AllianceBernstein Holding LP are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental drivers, AllianceBernstein may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with NorthView Acquisition and AllianceBernstein

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

The idea behind NorthView Acquisition and AllianceBernstein Holding LP 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.