Correlation Between Alger Health and Saat Aggressive
Can any of the company-specific risk be diversified away by investing in both Alger Health and Saat Aggressive 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 Health and Saat Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alger Health Sciences and Saat Aggressive Strategy, you can compare the effects of market volatilities on Alger Health and Saat Aggressive 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 Health with a short position of Saat Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Health and Saat Aggressive.
Diversification Opportunities for Alger Health and Saat Aggressive
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alger and Saat is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Alger Health Sciences and Saat Aggressive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Aggressive Strategy and Alger Health 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 Health Sciences are associated (or correlated) with Saat Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Aggressive Strategy has no effect on the direction of Alger Health i.e., Alger Health and Saat Aggressive go up and down completely randomly.
Pair Corralation between Alger Health and Saat Aggressive
Assuming the 90 days horizon Alger Health is expected to generate 1.25 times less return on investment than Saat Aggressive. In addition to that, Alger Health is 1.32 times more volatile than Saat Aggressive Strategy. It trades about 0.11 of its total potential returns per unit of risk. Saat Aggressive Strategy is currently generating about 0.18 per unit of volatility. If you would invest 1,506 in Saat Aggressive Strategy on June 5, 2025 and sell it today you would earn a total of 89.00 from holding Saat Aggressive Strategy or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alger Health Sciences vs. Saat Aggressive Strategy
Performance |
| Timeline |
| Alger Health Sciences |
| Saat Aggressive Strategy |
Alger Health and Saat Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Health and Saat Aggressive
The main advantage of trading using opposite Alger Health and Saat Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Health position performs unexpectedly, Saat Aggressive 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 Saat Aggressive will offset losses from the drop in Saat Aggressive's long position.| Alger Health vs. Lord Abbett Health | Alger Health vs. Health Care Ultrasector | Alger Health vs. Tekla Healthcare Investors | Alger Health vs. Fidelity Advisor Health |
| Saat Aggressive vs. Simt Multi Asset Accumulation | Saat Aggressive vs. Saat Market Growth | Saat Aggressive vs. Simt Real Return | Saat Aggressive vs. Simt 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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