Correlation Between Highland Opportunities and Alliancebernstein

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

By analyzing existing cross correlation between Highland Opportunities And and Alliancebernstein Global High, you can compare the effects of market volatilities on Highland Opportunities 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 Highland Opportunities with a short position of Alliancebernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Opportunities and Alliancebernstein.

Diversification Opportunities for Highland Opportunities and Alliancebernstein

0.6

Correlation Coefficient

Highland Opportunities  Alliancebernstein

Poor diversification

The 3 months correlation between Highland and Alliancebernstein is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Highland Opportunities And and Alliancebernstein Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliancebernstein and Highland Opportunities 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 Highland Opportunities And 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 Highland Opportunities i.e., Highland Opportunities and Alliancebernstein go up and down completely randomly.

Pair Corralation between Highland Opportunities and Alliancebernstein

Given the investment horizon of 90 days Highland Opportunities And is expected to generate 1.82 times more return on investment than Alliancebernstein. However, Highland Opportunities is 1.82 times more volatile than Alliancebernstein Global High. It trades about 0.12 of its potential returns per unit of risk. Alliancebernstein Global High is currently generating about 0.21 per unit of risk. If you would invest  495.00  in Highland Opportunities And on May 6, 2025 and sell it today you would earn a total of  33.00  from holding Highland Opportunities And or generate 6.67% return on investment over 90 days.

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

Highland Opportunities And  vs.  Alliancebernstein Global High

Highland Opportunities

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Opportunities And are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak basic indicators, Highland Opportunities may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Alliancebernstein

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alliancebernstein Global High are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly weak basic indicators, Alliancebernstein may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Highland Opportunities and Alliancebernstein

The main advantage of trading using opposite Highland Opportunities and Alliancebernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Opportunities 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 Highland Opportunities And and Alliancebernstein Global High 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 Stocks Directory module to find actively traded stocks across global markets.