Correlation Between Alger Funds and Acrex
Can any of the company-specific risk be diversified away by investing in both Alger Funds and Acrex 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 Funds and Acrex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alger Funds Mid and Acrex, you can compare the effects of market volatilities on Alger Funds and Acrex 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 Funds with a short position of Acrex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Funds and Acrex.
Diversification Opportunities for Alger Funds and Acrex
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alger and Acrex is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Alger Funds Mid and Acrex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acrex and Alger Funds 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 Funds Mid are associated (or correlated) with Acrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acrex has no effect on the direction of Alger Funds i.e., Alger Funds and Acrex go up and down completely randomly.
Pair Corralation between Alger Funds and Acrex
Assuming the 90 days horizon Alger Funds Mid is expected to generate 1.07 times more return on investment than Acrex. However, Alger Funds is 1.07 times more volatile than Acrex. It trades about -0.07 of its potential returns per unit of risk. Acrex is currently generating about -0.29 per unit of risk. If you would invest 1,901 in Alger Funds Mid on September 28, 2024 and sell it today you would lose (53.00) from holding Alger Funds Mid or give up 2.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Alger Funds Mid vs. Acrex
Performance |
| Timeline |
| Alger Funds Mid |
| Acrex |
Alger Funds and Acrex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Funds and Acrex
The main advantage of trading using opposite Alger Funds and Acrex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Funds position performs unexpectedly, Acrex 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 Acrex will offset losses from the drop in Acrex's long position.| Alger Funds vs. Alger Smallcap Growth | Alger Funds vs. Alger Capital Appreciation | Alger Funds vs. Janus Overseas Fund | Alger Funds vs. Allianzgi Nfj Small Cap |
| Acrex vs. Lord Abbett Small | Acrex vs. Fidelity Small Cap | Acrex vs. Applied Finance Explorer | Acrex vs. Heartland Value Plus |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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