Correlation Between Alger Spectra and Hsbc Us

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

By analyzing existing cross correlation between Alger Spectra Fund and Hsbc Treasury Money, you can compare the effects of market volatilities on Alger Spectra and Hsbc Us 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 Spectra with a short position of Hsbc Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Spectra and Hsbc Us.

Diversification Opportunities for Alger Spectra and Hsbc Us

0.0

Correlation Coefficient

Alger Spectra  Hsbc Us

Pay attention - limited upside

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

Pair Corralation between Alger Spectra and Hsbc Us

If you would invest  100.00  in Hsbc Treasury Money on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Hsbc Treasury Money or generate 0.0% return on investment over 90 days.

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

Alger Spectra Fund  vs.  Hsbc Treasury Money

Alger Spectra

Risk-Adjusted Performance

Very Weak

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

Hsbc Treasury Money

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Alger Spectra and Hsbc Us

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

The idea behind Alger Spectra Fund and Hsbc Treasury Money 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.