Correlation Between Alger Spectra and Voya Floating
Can any of the company-specific risk be diversified away by investing in both Alger Spectra and Voya Floating 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 Voya Floating 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 Voya Floating Rate, you can compare the effects of market volatilities on Alger Spectra and Voya Floating 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 Voya Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Spectra and Voya Floating.
Diversification Opportunities for Alger Spectra and Voya Floating
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alger and Voya is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Alger Spectra Fund and Voya Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Floating Rate 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 Voya Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Floating Rate has no effect on the direction of Alger Spectra i.e., Alger Spectra and Voya Floating go up and down completely randomly.
Pair Corralation between Alger Spectra and Voya Floating
Assuming the 90 days horizon Alger Spectra Fund is expected to generate 6.27 times more return on investment than Voya Floating. However, Alger Spectra is 6.27 times more volatile than Voya Floating Rate. It trades about 0.12 of its potential returns per unit of risk. Voya Floating Rate is currently generating about 0.15 per unit of risk. If you would invest 1,846 in Alger Spectra Fund on October 6, 2024 and sell it today you would earn a total of 1,083 from holding Alger Spectra Fund or generate 58.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.68% |
Values | Daily Returns |
Alger Spectra Fund vs. Voya Floating Rate
Performance |
Timeline |
Alger Spectra |
Voya Floating Rate |
Alger Spectra and Voya Floating Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alger Spectra and Voya Floating
The main advantage of trading using opposite Alger Spectra and Voya Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Spectra position performs unexpectedly, Voya Floating 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 Voya Floating will offset losses from the drop in Voya Floating's long position.Alger Spectra vs. Alger Midcap Growth | Alger Spectra vs. Alger Midcap Growth | Alger Spectra vs. Alger Mid Cap | Alger Spectra vs. Alger Small Cap |
Voya Floating vs. Voya Investors Trust | Voya Floating vs. Voya Vacs Index | Voya Floating vs. Voya Vacs Index | Voya Floating vs. Vy T Rowe |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |