Correlation Between Alger Capital and Fundvantage Trust
Can any of the company-specific risk be diversified away by investing in both Alger Capital and Fundvantage Trust 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 Alger Capital and Fundvantage Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alger Capital Appreciation and Fundvantage Trust , you can compare the effects of market volatilities on Alger Capital and Fundvantage Trust 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 Alger Capital with a short position of Fundvantage Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Capital and Fundvantage Trust.
Diversification Opportunities for Alger Capital and Fundvantage Trust
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alger and Fundvantage is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Alger Capital Appreciation and Fundvantage Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundvantage Trust and Alger Capital 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 Alger Capital Appreciation are associated (or correlated) with Fundvantage Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundvantage Trust has no effect on the direction of Alger Capital i.e., Alger Capital and Fundvantage Trust go up and down completely randomly.
Pair Corralation between Alger Capital and Fundvantage Trust
Assuming the 90 days horizon Alger Capital Appreciation is expected to generate 8.13 times more return on investment than Fundvantage Trust. However, Alger Capital is 8.13 times more volatile than Fundvantage Trust . It trades about 0.24 of its potential returns per unit of risk. Fundvantage Trust is currently generating about 0.19 per unit of risk. If you would invest 3,511 in Alger Capital Appreciation on August 29, 2024 and sell it today you would earn a total of 266.00 from holding Alger Capital Appreciation or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Alger Capital Appreciation vs. Fundvantage Trust
Performance |
| Timeline |
| Alger Capital Apprec |
| Fundvantage Trust |
Alger Capital and Fundvantage Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Capital and Fundvantage Trust
The main advantage of trading using opposite Alger Capital and Fundvantage Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Capital position performs unexpectedly, Fundvantage Trust 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 Fundvantage Trust will offset losses from the drop in Fundvantage Trust's long position.| Alger Capital vs. Intermediate Term Tax Free Bond | Alger Capital vs. The Hartford Municipal | Alger Capital vs. Bbh Intermediate Municipal | Alger Capital vs. Federated Government Ultrashort |
| Fundvantage Trust vs. Balanced Fund Investor | Fundvantage Trust vs. Scharf Global Opportunity | Fundvantage Trust vs. Ab Value Fund | Fundvantage Trust vs. Western Asset Municipal |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |