Correlation Between Cref Money and Alger International
Can any of the company-specific risk be diversified away by investing in both Cref Money and Alger International 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 Cref Money and Alger International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and Alger International Growth, you can compare the effects of market volatilities on Cref Money and Alger International 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 Cref Money with a short position of Alger International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Alger International.
Diversification Opportunities for Cref Money and Alger International
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cref and Alger is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Alger International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger International and Cref Money 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 Cref Money Market are associated (or correlated) with Alger International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger International has no effect on the direction of Cref Money i.e., Cref Money and Alger International go up and down completely randomly.
Pair Corralation between Cref Money and Alger International
Assuming the 90 days trading horizon Cref Money is expected to generate 2.31 times less return on investment than Alger International. But when comparing it to its historical volatility, Cref Money Market is 42.81 times less risky than Alger International. It trades about 0.92 of its potential returns per unit of risk. Alger International Growth is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,825 in Alger International Growth on June 9, 2025 and sell it today you would earn a total of 40.00 from holding Alger International Growth or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Money Market vs. Alger International Growth
Performance |
| Timeline |
| Cref Money Market |
| Alger International |
Cref Money and Alger International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and Alger International
The main advantage of trading using opposite Cref Money and Alger International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money position performs unexpectedly, Alger International 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 International will offset losses from the drop in Alger International's long position.| Cref Money vs. Vanguard Total Stock | Cref Money vs. Vanguard 500 Index | Cref Money vs. Vanguard Total Stock | Cref Money vs. Vanguard Total Stock |
| Alger International vs. L Abbett Growth | Alger International vs. T Rowe Price | Alger International vs. Vanguard Mega Cap | Alger International vs. Qs Growth 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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