Correlation Between Amg Yacktman and Alger Spectra
Can any of the company-specific risk be diversified away by investing in both Amg Yacktman 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 Amg Yacktman and Alger Spectra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Yacktman Focused and Alger Spectra Fund, you can compare the effects of market volatilities on Amg Yacktman 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 Amg Yacktman with a short position of Alger Spectra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Yacktman and Alger Spectra.
Diversification Opportunities for Amg Yacktman and Alger Spectra
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amg and Alger is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Amg Yacktman Focused and Alger Spectra Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Spectra and Amg Yacktman 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 Amg Yacktman Focused 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 Amg Yacktman i.e., Amg Yacktman and Alger Spectra go up and down completely randomly.
Pair Corralation between Amg Yacktman and Alger Spectra
Assuming the 90 days horizon Amg Yacktman is expected to generate 3.31 times less return on investment than Alger Spectra. But when comparing it to its historical volatility, Amg Yacktman Focused is 1.64 times less risky than Alger Spectra. It trades about 0.06 of its potential returns per unit of risk. Alger Spectra Fund is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,911 in Alger Spectra Fund on August 29, 2024 and sell it today you would earn a total of 1,080 from holding Alger Spectra Fund or generate 56.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Yacktman Focused vs. Alger Spectra Fund
Performance |
| Timeline |
| Amg Yacktman Focused |
| Alger Spectra |
Amg Yacktman and Alger Spectra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Yacktman and Alger Spectra
The main advantage of trading using opposite Amg Yacktman and Alger Spectra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Yacktman 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.| Amg Yacktman vs. Amg Yacktman Fund | Amg Yacktman vs. Permanent Portfolio Class | Amg Yacktman vs. Oakmark International Fund | Amg Yacktman vs. Intrepid Endurance Fund |
| Alger Spectra vs. White Oak Select | Alger Spectra vs. Victory Rs Small | Alger Spectra vs. Alger Capital Appreciation | Alger Spectra vs. Reynolds Blue Chip |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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