Correlation Between Alger Capital and Ocm Mutual

Can any of the company-specific risk be diversified away by investing in both Alger Capital and Ocm Mutual 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 Ocm Mutual 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 Ocm Mutual Fund, you can compare the effects of market volatilities on Alger Capital and Ocm Mutual 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 Ocm Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Capital and Ocm Mutual.

Diversification Opportunities for Alger Capital and Ocm Mutual

-0.74

Correlation Coefficient

Alger Capital  Ocm Mutual

Pay attention - limited upside

The 3 months correlation between Alger and Ocm is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Alger Capital Appreciation and Ocm Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocm Mutual Fund 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 Ocm Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocm Mutual Fund has no effect on the direction of Alger Capital i.e., Alger Capital and Ocm Mutual go up and down completely randomly.

Pair Corralation between Alger Capital and Ocm Mutual

Assuming the 90 days horizon Alger Capital is expected to generate 2.83 times less return on investment than Ocm Mutual. In addition to that, Alger Capital is 1.06 times more volatile than Ocm Mutual Fund. It trades about 0.15 of its total potential returns per unit of risk. Ocm Mutual Fund is currently generating about 0.43 per unit of volatility. If you would invest  1,191  in Ocm Mutual Fund on October 27, 2024 and sell it today you would earn a total of  131.00  from holding Ocm Mutual Fund or generate 11.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Alger Capital Appreciation  vs.  Ocm Mutual Fund

Alger Capital Apprec

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Alger Capital Appreciation are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Alger Capital showed solid returns over the last few months and may actually be approaching a breakup point.

Ocm Mutual Fund

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Alger Capital and Ocm Mutual

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

The idea behind Alger Capital Appreciation and Ocm Mutual Fund 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.