Correlation Between Astor Longshort and Alger Smallcap
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Alger Smallcap 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 Astor Longshort and Alger Smallcap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Alger Smallcap Growth, you can compare the effects of market volatilities on Astor Longshort and Alger Smallcap 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 Astor Longshort with a short position of Alger Smallcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Alger Smallcap.
Diversification Opportunities for Astor Longshort and Alger Smallcap
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Alger is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Alger Smallcap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Smallcap Growth and Astor Longshort 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 Astor Longshort Fund are associated (or correlated) with Alger Smallcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Smallcap Growth has no effect on the direction of Astor Longshort i.e., Astor Longshort and Alger Smallcap go up and down completely randomly.
Pair Corralation between Astor Longshort and Alger Smallcap
Assuming the 90 days horizon Astor Longshort is expected to generate 1.47 times less return on investment than Alger Smallcap. But when comparing it to its historical volatility, Astor Longshort Fund is 4.89 times less risky than Alger Smallcap. It trades about 0.09 of its potential returns per unit of risk. Alger Smallcap Growth is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 690.00 in Alger Smallcap Growth on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Alger Smallcap Growth or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Astor Longshort Fund vs. Alger Smallcap Growth
Performance |
| Timeline |
| Astor Longshort |
| Alger Smallcap Growth |
Astor Longshort and Alger Smallcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Alger Smallcap
The main advantage of trading using opposite Astor Longshort and Alger Smallcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Alger Smallcap 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 Alger Smallcap will offset losses from the drop in Alger Smallcap's long position.| Astor Longshort vs. SCOR PK | Astor Longshort vs. Morningstar Unconstrained Allocation | Astor Longshort vs. Via Renewables | Astor Longshort vs. Bondbloxx ETF Trust |
| Alger Smallcap vs. Prudential Real Estate | Alger Smallcap vs. Goldman Sachs Real | Alger Smallcap vs. Commonwealth Real Estate | Alger Smallcap vs. Columbia Real Estate |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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