Correlation Between Alger Health and Hussman Strategic
Can any of the company-specific risk be diversified away by investing in both Alger Health and Hussman Strategic 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 Hussman Strategic 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 Hussman Strategic Dividend, you can compare the effects of market volatilities on Alger Health and Hussman Strategic 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 Hussman Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Health and Hussman Strategic.
Diversification Opportunities for Alger Health and Hussman Strategic
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alger and Hussman is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Alger Health Sciences and Hussman Strategic Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hussman Strategic 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 Hussman Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hussman Strategic has no effect on the direction of Alger Health i.e., Alger Health and Hussman Strategic go up and down completely randomly.
Pair Corralation between Alger Health and Hussman Strategic
Assuming the 90 days horizon Alger Health is expected to generate 2.26 times less return on investment than Hussman Strategic. In addition to that, Alger Health is 5.93 times more volatile than Hussman Strategic Dividend. It trades about 0.02 of its total potential returns per unit of risk. Hussman Strategic Dividend is currently generating about 0.21 per unit of volatility. If you would invest 928.00 in Hussman Strategic Dividend on September 1, 2024 and sell it today you would earn a total of 33.00 from holding Hussman Strategic Dividend or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Alger Health Sciences vs. Hussman Strategic Dividend
Performance |
| Timeline |
| Alger Health Sciences |
| Hussman Strategic |
Alger Health and Hussman Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Health and Hussman Strategic
The main advantage of trading using opposite Alger Health and Hussman Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Health position performs unexpectedly, Hussman Strategic 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 Hussman Strategic will offset losses from the drop in Hussman Strategic's long position.| Alger Health vs. Small Cap Equity | Alger Health vs. Us Strategic Equity | Alger Health vs. Ultra Short Fixed Income | Alger Health vs. Calamos Global Equity |
| Hussman Strategic vs. Prudential Health Sciences | Hussman Strategic vs. The Gabelli Healthcare | Hussman Strategic vs. Health Care Fund | Hussman Strategic vs. Delaware Healthcare Fund |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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