Correlation Between Europac Gold and Alger Funds
Can any of the company-specific risk be diversified away by investing in both Europac Gold and Alger Funds 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 Europac Gold and Alger Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and The Alger Funds, you can compare the effects of market volatilities on Europac Gold and Alger Funds 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 Europac Gold with a short position of Alger Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Alger Funds.
Diversification Opportunities for Europac Gold and Alger Funds
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Europac and Alger is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and The Alger Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Funds and Europac Gold 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 Europac Gold Fund are associated (or correlated) with Alger Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Funds has no effect on the direction of Europac Gold i.e., Europac Gold and Alger Funds go up and down completely randomly.
Pair Corralation between Europac Gold and Alger Funds
Assuming the 90 days horizon Europac Gold Fund is expected to generate 0.98 times more return on investment than Alger Funds. However, Europac Gold Fund is 1.02 times less risky than Alger Funds. It trades about 0.32 of its potential returns per unit of risk. The Alger Funds is currently generating about 0.09 per unit of risk. If you would invest 1,395 in Europac Gold Fund on May 29, 2025 and sell it today you would earn a total of 137.00 from holding Europac Gold Fund or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Europac Gold Fund vs. The Alger Funds
Performance |
| Timeline |
| Europac Gold |
| Alger Funds |
Europac Gold and Alger Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Alger Funds
The main advantage of trading using opposite Europac Gold and Alger Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Alger Funds 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 Funds will offset losses from the drop in Alger Funds' long position.| Europac Gold vs. Europac International Value | Europac Gold vs. Europac International Dividend | Europac Gold vs. Ep Emerging Markets | Europac Gold vs. Europac International Bond |
| Alger Funds vs. Rmb Mendon Financial | Alger Funds vs. Fidelity Advisor Financial | Alger Funds vs. Putnam Global Financials | Alger Funds vs. Financial Industries 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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