Correlation Between Ab Select and Alger Spectra
Can any of the company-specific risk be diversified away by investing in both Ab Select 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 Ab Select and Alger Spectra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Equity and Alger Spectra Fund, you can compare the effects of market volatilities on Ab Select 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 Ab Select with a short position of Alger Spectra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Alger Spectra.
Diversification Opportunities for Ab Select and Alger Spectra
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between AUUIX and Alger is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity and Alger Spectra Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Spectra and Ab Select 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 Select Equity 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 Ab Select i.e., Ab Select and Alger Spectra go up and down completely randomly.
Pair Corralation between Ab Select and Alger Spectra
Assuming the 90 days horizon Ab Select is expected to generate 1.8 times less return on investment than Alger Spectra. But when comparing it to its historical volatility, Ab Select Equity is 1.63 times less risky than Alger Spectra. It trades about 0.29 of its potential returns per unit of risk. Alger Spectra Fund is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,493 in Alger Spectra Fund on April 11, 2025 and sell it today you would earn a total of 767.00 from holding Alger Spectra Fund or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Equity vs. Alger Spectra Fund
Performance |
| Timeline |
| Ab Select Equity |
| Alger Spectra |
Ab Select and Alger Spectra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Alger Spectra
The main advantage of trading using opposite Ab Select and Alger Spectra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select 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.| Ab Select vs. Aqr Diversified Arbitrage | Ab Select vs. Calvert Conservative Allocation | Ab Select vs. Blackrock Conservative Prprdptfinstttnl | Ab Select vs. Oppenheimer International Diversified |
| Alger Spectra vs. Nationwide Bailard Technology | Alger Spectra vs. Hennessy Technology Fund | Alger Spectra vs. Fidelity Advisor Technology | Alger Spectra vs. Firsthand Technology Opportunities |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Positions Ratings 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 | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |