Correlation Between Alger Funds and COLGATE
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By analyzing existing cross correlation between Alger Funds Mid and COLGATE PALMOLIVE MEDIUM TERM, you can compare the effects of market volatilities on Alger Funds and COLGATE 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 Funds with a short position of COLGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Funds and COLGATE.
Diversification Opportunities for Alger Funds and COLGATE
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alger and COLGATE is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Alger Funds Mid and COLGATE PALMOLIVE MEDIUM TERM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLGATE PALMOLIVE and Alger Funds 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 Funds Mid are associated (or correlated) with COLGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COLGATE PALMOLIVE has no effect on the direction of Alger Funds i.e., Alger Funds and COLGATE go up and down completely randomly.
Pair Corralation between Alger Funds and COLGATE
Assuming the 90 days horizon Alger Funds Mid is expected to generate 1.28 times more return on investment than COLGATE. However, Alger Funds is 1.28 times more volatile than COLGATE PALMOLIVE MEDIUM TERM. It trades about 0.16 of its potential returns per unit of risk. COLGATE PALMOLIVE MEDIUM TERM is currently generating about -0.08 per unit of risk. If you would invest 1,632 in Alger Funds Mid on September 25, 2024 and sell it today you would earn a total of 226.00 from holding Alger Funds Mid or generate 13.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 73.44% |
Values | Daily Returns |
Alger Funds Mid vs. COLGATE PALMOLIVE MEDIUM TERM
Performance |
Timeline |
Alger Funds Mid |
COLGATE PALMOLIVE |
Alger Funds and COLGATE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alger Funds and COLGATE
The main advantage of trading using opposite Alger Funds and COLGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Funds position performs unexpectedly, COLGATE 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 COLGATE will offset losses from the drop in COLGATE's long position.Alger Funds vs. Alger Smallcap Growth | Alger Funds vs. Alger Capital Appreciation | Alger Funds vs. Janus Overseas Fund | Alger Funds vs. Allianzgi Nfj Small Cap |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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