Correlation Between Alger Capital and Alger International
Can any of the company-specific risk be diversified away by investing in both Alger Capital and Alger International 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 Capital and Alger International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alger Capital Appreciation and Alger International Growth, you can compare the effects of market volatilities on Alger Capital and Alger International 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 Capital with a short position of Alger International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Capital and Alger International.
Diversification Opportunities for Alger Capital and Alger International
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Alger and Alger is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Alger Capital Appreciation and Alger International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger International and Alger 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 Alger Capital Appreciation are associated (or correlated) with Alger International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger International has no effect on the direction of Alger Capital i.e., Alger Capital and Alger International go up and down completely randomly.
Pair Corralation between Alger Capital and Alger International
Assuming the 90 days horizon Alger Capital Appreciation is expected to generate 1.59 times more return on investment than Alger International. However, Alger Capital is 1.59 times more volatile than Alger International Growth. It trades about 0.37 of its potential returns per unit of risk. Alger International Growth is currently generating about 0.22 per unit of risk. If you would invest 3,315 in Alger Capital Appreciation on April 30, 2025 and sell it today you would earn a total of 991.00 from holding Alger Capital Appreciation or generate 29.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alger Capital Appreciation vs. Alger International Growth
Performance |
| Timeline |
| Alger Capital Apprec |
| Alger International |
Alger Capital and Alger International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Capital and Alger International
The main advantage of trading using opposite Alger Capital and Alger International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Capital position performs unexpectedly, Alger International 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 International will offset losses from the drop in Alger International's long position.| Alger Capital vs. Prudential Financial Services | Alger Capital vs. Icon Financial Fund | Alger Capital vs. Blackrock Financial Institutions | Alger Capital vs. Financials Ultrasector Profund |
| Alger International vs. Cref Money Market | Alger International vs. Schwab Government Money | Alger International vs. Franklin Government Money | Alger International vs. John Hancock Money |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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