Correlation Between Allianzgi Nfj and Alger Funds

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

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

Diversification Opportunities for Allianzgi Nfj and Alger Funds

0.3

Correlation Coefficient

Allianzgi Nfj  Alger Funds

Weak diversification

The 3 months correlation between Allianzgi and Alger is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj Small Cap and Alger Funds Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Funds Mid and Allianzgi Nfj 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 Allianzgi Nfj Small Cap are associated (or correlated) with Alger Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Funds Mid has no effect on the direction of Allianzgi Nfj i.e., Allianzgi Nfj and Alger Funds go up and down completely randomly.

Pair Corralation between Allianzgi Nfj and Alger Funds

Assuming the 90 days horizon Allianzgi Nfj Small Cap is expected to under-perform the Alger Funds. But the mutual fund apears to be less risky and, when comparing its historical volatility, Allianzgi Nfj Small Cap is 1.04 times less risky than Alger Funds. The mutual fund trades about -0.29 of its potential returns per unit of risk. The Alger Funds Mid is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest  1,926  in Alger Funds Mid on October 10, 2024 and sell it today you would lose (97.00) from holding Alger Funds Mid or give up 5.04% of portfolio value over 90 days.

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

Allianzgi Nfj Small Cap  vs.  Alger Funds Mid

Allianzgi Nfj Small

Risk-Adjusted Performance

0 of 100

Very Weak

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

Alger Funds Mid

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alger Funds Mid are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Alger Funds may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Allianzgi Nfj and Alger Funds

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

The idea behind Allianzgi Nfj Small Cap and Alger Funds Mid 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.