Correlation Between Alger Ai and Siit Global

Can any of the company-specific risk be diversified away by investing in both Alger Ai and Siit Global 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 Alger Ai and Siit Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alger Ai Enablers and Siit Global Managed, you can compare the effects of market volatilities on Alger Ai and Siit Global 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 Alger Ai with a short position of Siit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Ai and Siit Global.

Diversification Opportunities for Alger Ai and Siit Global

-0.28

Correlation Coefficient

Alger Ai  Siit Global

Very good diversification

The 3 months correlation between Alger and Siit is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Alger Ai Enablers and Siit Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Global Managed and Alger Ai 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 Alger Ai Enablers are associated (or correlated) with Siit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Global Managed has no effect on the direction of Alger Ai i.e., Alger Ai and Siit Global go up and down completely randomly.

Pair Corralation between Alger Ai and Siit Global

Assuming the 90 days horizon Alger Ai Enablers is expected to under-perform the Siit Global. In addition to that, Alger Ai is 4.26 times more volatile than Siit Global Managed. It trades about -0.07 of its total potential returns per unit of risk. Siit Global Managed is currently generating about 0.21 per unit of volatility. If you would invest  1,105  in Siit Global Managed on December 28, 2024 and sell it today you would earn a total of  76.00  from holding Siit Global Managed or generate 6.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Alger Ai Enablers  vs.  Siit Global Managed

Alger Ai Enablers

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alger Ai Enablers has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Siit Global Managed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Global Managed are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Siit Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Alger Ai and Siit Global

The main advantage of trading using opposite Alger Ai and Siit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Ai position performs unexpectedly, Siit Global 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 Siit Global will offset losses from the drop in Siit Global's long position.

The idea behind Alger Ai Enablers and Siit Global Managed pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..