Correlation Between AllianceBernstein and Moelis

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

Diversification Opportunities for AllianceBernstein and Moelis

-0.09
  Correlation Coefficient

Good diversification

The 3 months correlation between AllianceBernstein and Moelis is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Moelis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moelis 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 Moelis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moelis has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Moelis go up and down completely randomly.

Pair Corralation between AllianceBernstein and Moelis

Allowing for the 90-day total investment horizon AllianceBernstein Holding LP is expected to under-perform the Moelis. But the stock apears to be less risky and, when comparing its historical volatility, AllianceBernstein Holding LP is 1.25 times less risky than Moelis. The stock trades about -0.01 of its potential returns per unit of risk. The Moelis Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4,011  in Moelis Co on December 29, 2023 and sell it today you would earn a total of  1,738  from holding Moelis Co or generate 43.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

AllianceBernstein Holding LP  vs.  Moelis Co

 Performance 
       Timeline  
AllianceBernstein 

Risk-Adjusted Performance

12 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in AllianceBernstein Holding LP are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal fundamental drivers, AllianceBernstein sustained solid returns over the last few months and may actually be approaching a breakup point.
Moelis 

Risk-Adjusted Performance

3 of 100

 
Low
 
High
Very Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Moelis Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Moelis is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

AllianceBernstein and Moelis Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AllianceBernstein and Moelis

The main advantage of trading using opposite AllianceBernstein and Moelis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Moelis 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 Moelis will offset losses from the drop in Moelis' long position.
The idea behind AllianceBernstein Holding LP and Moelis Co 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.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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