Correlation Between AllianceBernstein and Carlyle
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Carlyle 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 Carlyle 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 Carlyle Group, you can compare the effects of market volatilities on AllianceBernstein and Carlyle 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 Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Carlyle.
Diversification Opportunities for AllianceBernstein and Carlyle
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AllianceBernstein and Carlyle is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group 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 Carlyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Group has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Carlyle go up and down completely randomly.
Pair Corralation between AllianceBernstein and Carlyle
Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to under-perform the Carlyle. In addition to that, AllianceBernstein is 1.0 times more volatile than Carlyle Group. It trades about -0.06 of its total potential returns per unit of risk. Carlyle Group is currently generating about -0.02 per unit of volatility. If you would invest 4,644 in Carlyle Group on January 26, 2024 and sell it today you would lose (32.00) from holding Carlyle Group or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. Carlyle Group
Performance |
| Timeline |
| AllianceBernstein |
| Carlyle Group |
AllianceBernstein and Carlyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Carlyle
The main advantage of trading using opposite AllianceBernstein and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Carlyle 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 Carlyle will offset losses from the drop in Carlyle's long position.| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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