Correlation Between Touchstone Sands and Alger Capital
Can any of the company-specific risk be diversified away by investing in both Touchstone Sands 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 Touchstone Sands and Alger Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Sands Capital and Alger Capital Appreciation, you can compare the effects of market volatilities on Touchstone Sands 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 Touchstone Sands with a short position of Alger Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Sands and Alger Capital.
Diversification Opportunities for Touchstone Sands and Alger Capital
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Touchstone and Alger is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Sands Capital 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 Touchstone Sands 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 Touchstone Sands Capital 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 Touchstone Sands i.e., Touchstone Sands and Alger Capital go up and down completely randomly.
Pair Corralation between Touchstone Sands and Alger Capital
Assuming the 90 days horizon Touchstone Sands is expected to generate 153.83 times less return on investment than Alger Capital. But when comparing it to its historical volatility, Touchstone Sands Capital is 1.34 times less risky than Alger Capital. It trades about 0.0 of its potential returns per unit of risk. Alger Capital Appreciation is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,465 in Alger Capital Appreciation on June 6, 2025 and sell it today you would earn a total of 399.00 from holding Alger Capital Appreciation or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Sands Capital vs. Alger Capital Appreciation
Performance |
| Timeline |
| Touchstone Sands Capital |
| Alger Capital Apprec |
Touchstone Sands and Alger Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Sands and Alger Capital
The main advantage of trading using opposite Touchstone Sands and Alger Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Sands 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.| Touchstone Sands vs. Touchstone Small Cap | Touchstone Sands vs. Touchstone Sands Capital | Touchstone Sands vs. Mid Cap Growth | Touchstone Sands vs. Mid Cap Growth |
| Alger Capital vs. Delaware Limited Term Diversified | Alger Capital vs. Lord Abbett Diversified | Alger Capital vs. Vanguard Strategic Small Cap | Alger Capital vs. Columbia Diversified Equity |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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