Correlation Between Alger Capital and Ab Large
Can any of the company-specific risk be diversified away by investing in both Alger Capital and Ab Large 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 Capital and Ab Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alger Capital Appreciation and Ab Large Cap, you can compare the effects of market volatilities on Alger Capital and Ab Large 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 Capital with a short position of Ab Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Capital and Ab Large.
Diversification Opportunities for Alger Capital and Ab Large
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ALGER and APGYX is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Alger Capital Appreciation and Ab Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Large Cap and Alger Capital 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 Capital Appreciation are associated (or correlated) with Ab Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Large Cap has no effect on the direction of Alger Capital i.e., Alger Capital and Ab Large go up and down completely randomly.
Pair Corralation between Alger Capital and Ab Large
Assuming the 90 days horizon Alger Capital Appreciation is expected to generate 1.21 times more return on investment than Ab Large. However, Alger Capital is 1.21 times more volatile than Ab Large Cap. It trades about 0.21 of its potential returns per unit of risk. Ab Large Cap is currently generating about 0.08 per unit of risk. If you would invest 6,637 in Alger Capital Appreciation on August 30, 2024 and sell it today you would earn a total of 412.00 from holding Alger Capital Appreciation or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alger Capital Appreciation vs. Ab Large Cap
Performance |
| Timeline |
| Alger Capital Apprec |
| Ab Large Cap |
Alger Capital and Ab Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Capital and Ab Large
The main advantage of trading using opposite Alger Capital and Ab Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Capital position performs unexpectedly, Ab Large 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 Ab Large will offset losses from the drop in Ab Large's long position.| Alger Capital vs. Alger Capital Appreciation | Alger Capital vs. Select Fund C | Alger Capital vs. Alger Capital Appreciation | Alger Capital vs. Select Fund R |
| Ab Large vs. Ab Small Cap | Ab Large vs. Ab Sustainable Global | Ab Large vs. Ab Relative Value | Ab Large vs. Jpmorgan Equity Income |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |