Correlation Between Alger Dynamic and Greenspring Fund

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

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

Diversification Opportunities for Alger Dynamic and Greenspring Fund

0.85

Correlation Coefficient

Alger Dynamic  Greenspring Fund

Very poor diversification

The 3 months correlation between Alger and Greenspring is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Alger Dynamic Opportunities and Greenspring Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenspring Fund Retail and Alger Dynamic 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 Dynamic Opportunities are associated (or correlated) with Greenspring Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenspring Fund Retail has no effect on the direction of Alger Dynamic i.e., Alger Dynamic and Greenspring Fund go up and down completely randomly.

Pair Corralation between Alger Dynamic and Greenspring Fund

Assuming the 90 days horizon Alger Dynamic Opportunities is expected to generate 0.76 times more return on investment than Greenspring Fund. However, Alger Dynamic Opportunities is 1.32 times less risky than Greenspring Fund. It trades about 0.24 of its potential returns per unit of risk. Greenspring Fund Retail is currently generating about 0.16 per unit of risk. If you would invest  2,149  in Alger Dynamic Opportunities on May 4, 2025 and sell it today you would earn a total of  202.00  from holding Alger Dynamic Opportunities or generate 9.4% return on investment over 90 days.

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

Alger Dynamic Opportunities  vs.  Greenspring Fund Retail

Alger Dynamic Opport

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alger Dynamic Opportunities are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Alger Dynamic may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Greenspring Fund Retail

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Greenspring Fund Retail are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Greenspring Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Alger Dynamic and Greenspring Fund

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

The idea behind Alger Dynamic Opportunities and Greenspring Fund Retail 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.