Correlation Between Alger Mid and CAMDEN

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

By analyzing existing cross correlation between Alger Mid Cap and CAMDEN PPTY TR, you can compare the effects of market volatilities on Alger Mid and CAMDEN 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 Mid with a short position of CAMDEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Mid and CAMDEN.

Diversification Opportunities for Alger Mid and CAMDEN

0.0

Correlation Coefficient

Alger Mid  CAMDEN

Pay attention - limited upside

The 3 months correlation between Alger and CAMDEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alger Mid Cap and CAMDEN PPTY TR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAMDEN PPTY TR and Alger Mid 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 Mid Cap are associated (or correlated) with CAMDEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAMDEN PPTY TR has no effect on the direction of Alger Mid i.e., Alger Mid and CAMDEN go up and down completely randomly.

Pair Corralation between Alger Mid and CAMDEN

If you would invest  0.00  in Alger Mid Cap on October 13, 2024 and sell it today you would earn a total of  0.00  from holding Alger Mid Cap or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.27%
Values	Daily Returns

Alger Mid Cap  vs.  CAMDEN PPTY TR

Alger Mid Cap

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Alger Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Alger Mid is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CAMDEN PPTY TR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CAMDEN PPTY TR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for CAMDEN PPTY TR investors.

Pair Trading with Alger Mid and CAMDEN

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

The idea behind Alger Mid Cap and CAMDEN PPTY TR 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.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.