Correlation Between Alger Health and Franklin Double
Can any of the company-specific risk be diversified away by investing in both Alger Health and Franklin Double 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 Health and Franklin Double into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alger Health Sciences and Franklin Double Tax Free, you can compare the effects of market volatilities on Alger Health and Franklin Double 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 Health with a short position of Franklin Double. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Health and Franklin Double.
Diversification Opportunities for Alger Health and Franklin Double
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alger and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alger Health Sciences and Franklin Double Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Double Tax and Alger Health 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 Health Sciences are associated (or correlated) with Franklin Double. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Double Tax has no effect on the direction of Alger Health i.e., Alger Health and Franklin Double go up and down completely randomly.
Pair Corralation between Alger Health and Franklin Double
If you would invest 1,318 in Alger Health Sciences on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Alger Health Sciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Alger Health Sciences vs. Franklin Double Tax Free
Performance |
| Timeline |
| Alger Health Sciences |
| Franklin Double Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alger Health and Franklin Double Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Health and Franklin Double
The main advantage of trading using opposite Alger Health and Franklin Double positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Health position performs unexpectedly, Franklin Double 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 Franklin Double will offset losses from the drop in Franklin Double's long position.| Alger Health vs. Dreyfus Government Cash | Alger Health vs. Aig Government Money | Alger Health vs. Federated Government Income | Alger Health vs. Jpmorgan Government Bond |
| Franklin Double vs. Alger Health Sciences | Franklin Double vs. Invesco Global Health | Franklin Double vs. Alphacentric Lifesci Healthcare | Franklin Double vs. Lord Abbett Health |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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