Correlation Between Alger Health and Lkcm Small
Can any of the company-specific risk be diversified away by investing in both Alger Health and Lkcm Small 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 Lkcm Small 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 Lkcm Small Cap, you can compare the effects of market volatilities on Alger Health and Lkcm Small 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 Lkcm Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Health and Lkcm Small.
Diversification Opportunities for Alger Health and Lkcm Small
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alger and Lkcm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alger Health Sciences and Lkcm Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Small Cap 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 Lkcm Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Small Cap has no effect on the direction of Alger Health i.e., Alger Health and Lkcm Small go up and down completely randomly.
Pair Corralation between Alger Health and Lkcm Small
If you would invest 1,336 in Alger Health Sciences on August 30, 2024 and sell it today you would earn a total of 29.00 from holding Alger Health Sciences or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Alger Health Sciences vs. Lkcm Small Cap
Performance |
| Timeline |
| Alger Health Sciences |
| Lkcm Small Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alger Health and Lkcm Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Health and Lkcm Small
The main advantage of trading using opposite Alger Health and Lkcm Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Health position performs unexpectedly, Lkcm Small 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 Lkcm Small will offset losses from the drop in Lkcm Small's long position.| Alger Health vs. Versatile Bond Portfolio | Alger Health vs. Angel Oak Financial | Alger Health vs. Bbh Intermediate Municipal | Alger Health vs. Touchstone Ohio Tax |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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