Correlation Between Thornburg International and Alger Capital
Can any of the company-specific risk be diversified away by investing in both Thornburg International 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 Thornburg International and Alger Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg International Value and Alger Capital Appreciation, you can compare the effects of market volatilities on Thornburg International 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 Thornburg International with a short position of Alger Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg International and Alger Capital.
Diversification Opportunities for Thornburg International and Alger Capital
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thornburg and Alger is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg International Value 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 Thornburg International 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 Thornburg International Value 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 Thornburg International i.e., Thornburg International and Alger Capital go up and down completely randomly.
Pair Corralation between Thornburg International and Alger Capital
Assuming the 90 days horizon Thornburg International Value is expected to under-perform the Alger Capital. But the mutual fund apears to be less risky and, when comparing its historical volatility, Thornburg International Value is 1.83 times less risky than Alger Capital. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Alger Capital Appreciation is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,367 in Alger Capital Appreciation on August 27, 2025 and sell it today you would earn a total of 306.00 from holding Alger Capital Appreciation or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg International Value vs. Alger Capital Appreciation
Performance |
| Timeline |
| Thornburg International |
| Alger Capital Apprec |
Thornburg International and Alger Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg International and Alger Capital
The main advantage of trading using opposite Thornburg International and Alger Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg International 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.| Thornburg International vs. Precious Metals And | Thornburg International vs. Gold And Precious | Thornburg International vs. Gabelli Gold Fund | Thornburg International vs. Oppenheimer Gold Special |
| Alger Capital vs. California Bond Fund | Alger Capital vs. Vanguard High Yield Tax Exempt | Alger Capital vs. Praxis Impact Bond | Alger Capital vs. Transamerica Bond Class |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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