Correlation Between Jackson Square and Alger Midcap

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Can any of the company-specific risk be diversified away by investing in both Jackson Square and Alger Midcap 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 Jackson Square and Alger Midcap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Square Smid Cap and Alger Midcap Growth, you can compare the effects of market volatilities on Jackson Square and Alger Midcap 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 Jackson Square with a short position of Alger Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Square and Alger Midcap.

Diversification Opportunities for Jackson Square and Alger Midcap

0.28
  Correlation Coefficient

Modest diversification

The 3 months correlation between Jackson and Alger is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Square Smid Cap and Alger Midcap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Midcap Growth and Jackson Square 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 Jackson Square Smid Cap are associated (or correlated) with Alger Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Midcap Growth has no effect on the direction of Jackson Square i.e., Jackson Square and Alger Midcap go up and down completely randomly.

Pair Corralation between Jackson Square and Alger Midcap

Assuming the 90 days horizon Jackson Square Smid Cap is expected to generate 1.0 times more return on investment than Alger Midcap. However, Jackson Square Smid Cap is 1.0 times less risky than Alger Midcap. It trades about 0.11 of its potential returns per unit of risk. Alger Midcap Growth is currently generating about -0.02 per unit of risk. If you would invest  1,839  in Jackson Square Smid Cap on August 18, 2025 and sell it today you would earn a total of  154.00  from holding Jackson Square Smid Cap or generate 8.37% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Jackson Square Smid Cap  vs.  Alger Midcap Growth

 Performance 
       Timeline  
Jackson Square Smid 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Jackson Square Smid Cap are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jackson Square may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Alger Midcap Growth 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Alger Midcap Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Alger Midcap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jackson Square and Alger Midcap Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jackson Square and Alger Midcap

The main advantage of trading using opposite Jackson Square and Alger Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Square position performs unexpectedly, Alger Midcap 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 Midcap will offset losses from the drop in Alger Midcap's long position.
The idea behind Jackson Square Smid Cap and Alger Midcap Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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