Correlation Between Ab Municipal and Alger Capital
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and Alger Capital 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 Ab Municipal and Alger Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Municipal Bond and Alger Capital Appreciation, you can compare the effects of market volatilities on Ab Municipal and Alger Capital 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 Ab Municipal with a short position of Alger Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Alger Capital.
Diversification Opportunities for Ab Municipal and Alger Capital
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AUNCX and Alger is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Alger Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Capital Apprec and Ab Municipal 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 Ab Municipal Bond are associated (or correlated) with Alger Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Capital Apprec has no effect on the direction of Ab Municipal i.e., Ab Municipal and Alger Capital go up and down completely randomly.
Pair Corralation between Ab Municipal and Alger Capital
Assuming the 90 days horizon Ab Municipal is expected to generate 7.42 times less return on investment than Alger Capital. But when comparing it to its historical volatility, Ab Municipal Bond is 9.87 times less risky than Alger Capital. It trades about 0.29 of its potential returns per unit of risk. Alger Capital Appreciation is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 3,376 in Alger Capital Appreciation on June 1, 2025 and sell it today you would earn a total of 526.00 from holding Alger Capital Appreciation or generate 15.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Ab Municipal Bond vs. Alger Capital Appreciation
Performance |
| Timeline |
| Ab Municipal Bond |
| Alger Capital Apprec |
Ab Municipal and Alger Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Alger Capital
The main advantage of trading using opposite Ab Municipal and Alger Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, Alger Capital 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 Capital will offset losses from the drop in Alger Capital's long position.| Ab Municipal vs. Alphacentric Hedged Market | Ab Municipal vs. Lord Abbett Diversified | Ab Municipal vs. Franklin Emerging Market | Ab Municipal vs. Siit Emerging Markets |
| Alger Capital vs. Alphacentric Lifesci Healthcare | Alger Capital vs. Vanguard Health Care | Alger Capital vs. Invesco Global Health | Alger Capital vs. Blackrock Health Sciences |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |