Correlation Between Alger Capital and Jpmorgan Equity
Can any of the company-specific risk be diversified away by investing in both Alger Capital and Jpmorgan Equity 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 Capital and Jpmorgan Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alger Capital Appreciation and Jpmorgan Equity Fund, you can compare the effects of market volatilities on Alger Capital and Jpmorgan Equity 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 Capital with a short position of Jpmorgan Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Capital and Jpmorgan Equity.
Diversification Opportunities for Alger Capital and Jpmorgan Equity
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Alger and Jpmorgan is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Alger Capital Appreciation and Jpmorgan Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Equity and Alger Capital 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 Capital Appreciation are associated (or correlated) with Jpmorgan Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Equity has no effect on the direction of Alger Capital i.e., Alger Capital and Jpmorgan Equity go up and down completely randomly.
Pair Corralation between Alger Capital and Jpmorgan Equity
Assuming the 90 days horizon Alger Capital Appreciation is expected to under-perform the Jpmorgan Equity. In addition to that, Alger Capital is 2.17 times more volatile than Jpmorgan Equity Fund. It trades about -0.1 of its total potential returns per unit of risk. Jpmorgan Equity Fund is currently generating about -0.12 per unit of volatility. If you would invest 2,736 in Jpmorgan Equity Fund on December 2, 2024 and sell it today you would lose (235.00) from holding Jpmorgan Equity Fund or give up 8.59% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Alger Capital Appreciation vs. Jpmorgan Equity Fund
Performance |
Timeline |
Alger Capital Apprec |
Jpmorgan Equity |
Alger Capital and Jpmorgan Equity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alger Capital and Jpmorgan Equity
The main advantage of trading using opposite Alger Capital and Jpmorgan Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Capital position performs unexpectedly, Jpmorgan Equity 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 Jpmorgan Equity will offset losses from the drop in Jpmorgan Equity's long position.Alger Capital vs. Intal High Relative | Alger Capital vs. Victory Incore Fund | Alger Capital vs. Ft 7934 Corporate | Alger Capital vs. Rbc Emerging Markets |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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