Correlation Between Calvert Global and Alger Spectra
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Alger Spectra 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 Calvert Global and Alger Spectra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Alger Spectra Fund, you can compare the effects of market volatilities on Calvert Global and Alger Spectra 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 Calvert Global with a short position of Alger Spectra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Alger Spectra.
Diversification Opportunities for Calvert Global and Alger Spectra
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calvert and Alger is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Alger Spectra Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Spectra and Calvert Global 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 Calvert Global Energy are associated (or correlated) with Alger Spectra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Spectra has no effect on the direction of Calvert Global i.e., Calvert Global and Alger Spectra go up and down completely randomly.
Pair Corralation between Calvert Global and Alger Spectra
Assuming the 90 days horizon Calvert Global is expected to generate 4.18 times less return on investment than Alger Spectra. But when comparing it to its historical volatility, Calvert Global Energy is 2.13 times less risky than Alger Spectra. It trades about 0.12 of its potential returns per unit of risk. Alger Spectra Fund is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,191 in Alger Spectra Fund on September 13, 2024 and sell it today you would earn a total of 187.00 from holding Alger Spectra Fund or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Alger Spectra Fund
Performance |
| Timeline |
| Calvert Global Energy |
| Alger Spectra |
Calvert Global and Alger Spectra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Alger Spectra
The main advantage of trading using opposite Calvert Global and Alger Spectra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Alger Spectra 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 Spectra will offset losses from the drop in Alger Spectra's long position.| Calvert Global vs. Ab Global Risk | Calvert Global vs. Lgm Risk Managed | Calvert Global vs. Western Asset High | Calvert Global vs. Ab Global Risk |
| Alger Spectra vs. Alger Midcap Growth | Alger Spectra vs. Alger Midcap Growth | Alger Spectra vs. Alger Mid Cap | Alger Spectra vs. Alger Small Cap |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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