Correlation Between Fidelity Large and Alger Capital
Can any of the company-specific risk be diversified away by investing in both Fidelity Large 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 Fidelity Large and Alger Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Large Cap and Alger Capital Appreciation, you can compare the effects of market volatilities on Fidelity Large 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 Fidelity Large with a short position of Alger Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Large and Alger Capital.
Diversification Opportunities for Fidelity Large and Alger Capital
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Alger is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Large Cap 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 Fidelity Large 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 Fidelity Large Cap 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 Fidelity Large i.e., Fidelity Large and Alger Capital go up and down completely randomly.
Pair Corralation between Fidelity Large and Alger Capital
Assuming the 90 days horizon Fidelity Large is expected to generate 1.76 times less return on investment than Alger Capital. But when comparing it to its historical volatility, Fidelity Large Cap is 1.33 times less risky than Alger Capital. It trades about 0.08 of its potential returns per unit of risk. Alger Capital Appreciation is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,974 in Alger Capital Appreciation on March 26, 2025 and sell it today you would earn a total of 464.00 from holding Alger Capital Appreciation or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Large Cap vs. Alger Capital Appreciation
Performance |
| Timeline |
| Fidelity Large Cap |
| Alger Capital Apprec |
Fidelity Large and Alger Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Large and Alger Capital
The main advantage of trading using opposite Fidelity Large and Alger Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Large 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.| Fidelity Large vs. Allianzgi Health Sciences | Fidelity Large vs. Fidelity Advisor Health | Fidelity Large vs. Schwab Health Care | Fidelity Large vs. Vanguard Health Care |
| Alger Capital vs. Voya High Yield | Alger Capital vs. Columbia High Yield | Alger Capital vs. Prudential High Yield | Alger Capital vs. Barings High Yield |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |