Correlation Between Alger Global and Alger Spectra
Can any of the company-specific risk be diversified away by investing in both Alger Global 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 Alger Global and Alger Spectra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alger Global Growth and Alger Spectra Fund, you can compare the effects of market volatilities on Alger Global 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 Alger Global with a short position of Alger Spectra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Global and Alger Spectra.
Diversification Opportunities for Alger Global and Alger Spectra
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alger and Alger is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Alger Global Growth and Alger Spectra Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Spectra and Alger Global 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 Global Growth 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 Alger Global i.e., Alger Global and Alger Spectra go up and down completely randomly.
Pair Corralation between Alger Global and Alger Spectra
Assuming the 90 days horizon Alger Global Growth is expected to under-perform the Alger Spectra. But the mutual fund apears to be less risky and, when comparing its historical volatility, Alger Global Growth is 1.3 times less risky than Alger Spectra. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Alger Spectra Fund is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,646 in Alger Spectra Fund on June 8, 2025 and sell it today you would earn a total of 31.00 from holding Alger Spectra Fund or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alger Global Growth vs. Alger Spectra Fund
Performance |
| Timeline |
| Alger Global Growth |
| Alger Spectra |
Alger Global and Alger Spectra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Global and Alger Spectra
The main advantage of trading using opposite Alger Global and Alger Spectra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Global 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.| Alger Global vs. Columbia Global Technology | Alger Global vs. Science Technology Fund | Alger Global vs. Icon Information Technology | Alger Global vs. Dreyfus Technology Growth |
| Alger Spectra vs. Alger Midcap Growth | Alger Spectra vs. Alger Smallcap Growth | Alger Spectra vs. Victory Sycamore Established | Alger Spectra vs. Janus Overseas Fund |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |