Correlation Between Blackstone and AllianceBernstein

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Blackstone 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 Blackstone and AllianceBernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and AllianceBernstein Holding LP, you can compare the effects of market volatilities on Blackstone 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 Blackstone with a short position of AllianceBernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and AllianceBernstein.

Diversification Opportunities for Blackstone and AllianceBernstein

0.12
  Correlation Coefficient

Average diversification

The 3 months correlation between Blackstone and AllianceBernstein is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and AllianceBernstein Holding LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllianceBernstein and Blackstone 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 Blackstone Group 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 Blackstone i.e., Blackstone and AllianceBernstein go up and down completely randomly.

Pair Corralation between Blackstone and AllianceBernstein

Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 0.95 times more return on investment than AllianceBernstein. However, Blackstone Group is 1.06 times less risky than AllianceBernstein. It trades about 0.1 of its potential returns per unit of risk. AllianceBernstein Holding LP is currently generating about 0.09 per unit of risk. If you would invest  12,675  in Blackstone Group on December 29, 2023 and sell it today you would earn a total of  414.00  from holding Blackstone Group or generate 3.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Blackstone Group  vs.  AllianceBernstein Holding LP

 Performance 
       Timeline  
Blackstone Group 

Risk-Adjusted Performance

1 of 100

 
Low
 
High
Very Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Blackstone is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
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.

Blackstone and AllianceBernstein Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Blackstone and AllianceBernstein

The main advantage of trading using opposite Blackstone and AllianceBernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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 Blackstone Group 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.
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio