Correlation Between Alger Spectra and Quantitative Longshort
Can any of the company-specific risk be diversified away by investing in both Alger Spectra and Quantitative Longshort 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 Spectra and Quantitative Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alger Spectra Fund and Quantitative Longshort Equity, you can compare the effects of market volatilities on Alger Spectra and Quantitative Longshort 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 Spectra with a short position of Quantitative Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Spectra and Quantitative Longshort.
Diversification Opportunities for Alger Spectra and Quantitative Longshort
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alger and Quantitative is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Alger Spectra Fund and Quantitative Longshort Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantitative Longshort and Alger Spectra 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 Spectra Fund are associated (or correlated) with Quantitative Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantitative Longshort has no effect on the direction of Alger Spectra i.e., Alger Spectra and Quantitative Longshort go up and down completely randomly.
Pair Corralation between Alger Spectra and Quantitative Longshort
Assuming the 90 days horizon Alger Spectra Fund is expected to generate 2.12 times more return on investment than Quantitative Longshort. However, Alger Spectra is 2.12 times more volatile than Quantitative Longshort Equity. It trades about 0.41 of its potential returns per unit of risk. Quantitative Longshort Equity is currently generating about 0.27 per unit of risk. If you would invest 2,190 in Alger Spectra Fund on September 4, 2024 and sell it today you would earn a total of 232.00 from holding Alger Spectra Fund or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Alger Spectra Fund vs. Quantitative Longshort Equity
Performance |
| Timeline |
| Alger Spectra |
| Quantitative Longshort |
Alger Spectra and Quantitative Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Spectra and Quantitative Longshort
The main advantage of trading using opposite Alger Spectra and Quantitative Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Spectra position performs unexpectedly, Quantitative Longshort 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 Quantitative Longshort will offset losses from the drop in Quantitative Longshort's long position.| Alger Spectra vs. Alger Capital Appreciation | Alger Spectra vs. Alger Capital Appreciation | Alger Spectra vs. Alger Capital Appreciation | Alger Spectra vs. Select Fund C |
| Quantitative Longshort vs. Pace Smallmedium Growth | Quantitative Longshort vs. Mid Cap Growth | Quantitative Longshort vs. Ftfa Franklin Templeton Growth | Quantitative Longshort vs. Nationwide Growth 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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