Correlation Between Huber Capital and Alger Global
Can any of the company-specific risk be diversified away by investing in both Huber Capital and Alger Global 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 Huber Capital and Alger Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huber Capital Equity and Alger Global Growth, you can compare the effects of market volatilities on Huber Capital and Alger Global 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 Huber Capital with a short position of Alger Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and Alger Global.
Diversification Opportunities for Huber Capital and Alger Global
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HUBER and Alger is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Equity and Alger Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Global Growth and Huber 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 Huber Capital Equity are associated (or correlated) with Alger Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Global Growth has no effect on the direction of Huber Capital i.e., Huber Capital and Alger Global go up and down completely randomly.
Pair Corralation between Huber Capital and Alger Global
Assuming the 90 days horizon Huber Capital is expected to generate 1.34 times less return on investment than Alger Global. In addition to that, Huber Capital is 1.03 times more volatile than Alger Global Growth. It trades about 0.12 of its total potential returns per unit of risk. Alger Global Growth is currently generating about 0.17 per unit of volatility. If you would invest 3,220 in Alger Global Growth on September 2, 2024 and sell it today you would earn a total of 290.00 from holding Alger Global Growth or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huber Capital Equity vs. Alger Global Growth
Performance |
| Timeline |
| Huber Capital Equity |
| Alger Global Growth |
Huber Capital and Alger Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and Alger Global
The main advantage of trading using opposite Huber Capital and Alger Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital position performs unexpectedly, Alger Global 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 Global will offset losses from the drop in Alger Global's long position.| Huber Capital vs. Huber Capital Equity | Huber Capital vs. Huber Capital Small | Huber Capital vs. Huber Capital Small | Huber Capital vs. Amg Gwk Small |
| Alger Global vs. Alger Midcap Growth | Alger Global vs. Alger Midcap Growth | Alger Global vs. Alger Mid Cap | Alger Global 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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