Correlation Between Alger Funds and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Alger Funds and Barings Emerging 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 Barings Emerging 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 Barings Emerging Markets, you can compare the effects of market volatilities on Alger Funds and Barings Emerging 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 Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Funds and Barings Emerging.
Diversification Opportunities for Alger Funds and Barings Emerging
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alger and Barings is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Alger Funds Mid and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets 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 Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Alger Funds i.e., Alger Funds and Barings Emerging go up and down completely randomly.
Pair Corralation between Alger Funds and Barings Emerging
Assuming the 90 days horizon Alger Funds Mid is expected to generate 3.46 times more return on investment than Barings Emerging. However, Alger Funds is 3.46 times more volatile than Barings Emerging Markets. It trades about 0.13 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.07 per unit of risk. If you would invest 1,290 in Alger Funds Mid on September 2, 2024 and sell it today you would earn a total of 620.00 from holding Alger Funds Mid or generate 48.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alger Funds Mid vs. Barings Emerging Markets
Performance |
| Timeline |
| Alger Funds Mid |
| Barings Emerging Markets |
Alger Funds and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Funds and Barings Emerging
The main advantage of trading using opposite Alger Funds and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Funds position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging's long position.| Alger Funds vs. Aqr Diversified Arbitrage | Alger Funds vs. Small Cap Stock | Alger Funds vs. Principal Lifetime Hybrid | Alger Funds vs. Blackrock Sm Cap |
| Barings Emerging vs. Vy Goldman Sachs | Barings Emerging vs. Oppenheimer Gold Special | Barings Emerging vs. Gabelli Gold Fund | Barings Emerging vs. James Balanced Golden |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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