Correlation Between AllianceBernstein and FS KKR

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

Diversification Opportunities for AllianceBernstein and FS KKR

0.49

Correlation Coefficient

AllianceBernstein  FS KKR

Very weak diversification

The 3 months correlation between AllianceBernstein and FSK is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and FS KKR Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS KKR Capital 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 FS KKR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS KKR Capital has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and FS KKR go up and down completely randomly.

Pair Corralation between AllianceBernstein and FS KKR

Allowing for the 90-day total investment horizon AllianceBernstein is expected to generate 1384.0 times less return on investment than FS KKR. In addition to that, AllianceBernstein is 1.08 times more volatile than FS KKR Capital. It trades about 0.0 of its total potential returns per unit of risk. FS KKR Capital is currently generating about 0.13 per unit of volatility. If you would invest  1,886  in FS KKR Capital on May 5, 2025 and sell it today you would earn a total of  164.00  from holding FS KKR Capital or generate 8.7% return on investment over 90 days.

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

AllianceBernstein Holding LP  vs.  FS KKR Capital

AllianceBernstein

Risk-Adjusted Performance

Very Weak

Over the last 90 days AllianceBernstein Holding LP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, AllianceBernstein is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

FS KKR Capital

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FS KKR Capital are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, FS KKR may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with AllianceBernstein and FS KKR

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

The idea behind AllianceBernstein Holding LP and FS KKR Capital 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.