Correlation Between Multimanager Lifestyle and Alger Spectra
Can any of the company-specific risk be diversified away by investing in both Multimanager Lifestyle 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 Multimanager Lifestyle and Alger Spectra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multimanager Lifestyle Moderate and Alger Spectra, you can compare the effects of market volatilities on Multimanager Lifestyle 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 Multimanager Lifestyle with a short position of Alger Spectra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multimanager Lifestyle and Alger Spectra.
Diversification Opportunities for Multimanager Lifestyle and Alger Spectra
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Multimanager and Alger is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Multimanager Lifestyle Moderat and Alger Spectra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Spectra and Multimanager Lifestyle 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 Multimanager Lifestyle Moderate 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 Multimanager Lifestyle i.e., Multimanager Lifestyle and Alger Spectra go up and down completely randomly.
Pair Corralation between Multimanager Lifestyle and Alger Spectra
Assuming the 90 days horizon Multimanager Lifestyle is expected to generate 3.06 times less return on investment than Alger Spectra. But when comparing it to its historical volatility, Multimanager Lifestyle Moderate is 3.79 times less risky than Alger Spectra. It trades about 0.24 of its potential returns per unit of risk. Alger Spectra is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,254 in Alger Spectra on June 3, 2025 and sell it today you would earn a total of 451.00 from holding Alger Spectra or generate 13.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multimanager Lifestyle Moderat vs. Alger Spectra
Performance |
| Timeline |
| Multimanager Lifestyle |
| Alger Spectra |
Multimanager Lifestyle and Alger Spectra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multimanager Lifestyle and Alger Spectra
The main advantage of trading using opposite Multimanager Lifestyle and Alger Spectra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multimanager Lifestyle 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.| Multimanager Lifestyle vs. Aig Government Money | Multimanager Lifestyle vs. Lord Abbett Intermediate | Multimanager Lifestyle vs. Dunham Porategovernment Bond | Multimanager Lifestyle vs. Alpine Ultra Short |
| Alger Spectra vs. Prudential Real Estate | Alger Spectra vs. Pender Real Estate | Alger Spectra vs. Cohen Steers Real | Alger Spectra vs. Global Real Estate |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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