Correlation Between Alger Capital and Partners Value

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

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

Diversification Opportunities for Alger Capital and Partners Value

0.25

Correlation Coefficient

Alger Capital  Partners Value

Modest diversification

The 3 months correlation between Alger and Partners is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Alger Capital Appreciation and Partners Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partners Value and Alger Capital 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 Capital Appreciation are associated (or correlated) with Partners Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partners Value has no effect on the direction of Alger Capital i.e., Alger Capital and Partners Value go up and down completely randomly.

Pair Corralation between Alger Capital and Partners Value

Assuming the 90 days horizon Alger Capital Appreciation is expected to generate 1.58 times more return on investment than Partners Value. However, Alger Capital is 1.58 times more volatile than Partners Value Fund. It trades about 0.18 of its potential returns per unit of risk. Partners Value Fund is currently generating about -0.03 per unit of risk. If you would invest  9,977  in Alger Capital Appreciation on July 25, 2025 and sell it today you would earn a total of  1,426  from holding Alger Capital Appreciation or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Alger Capital Appreciation  vs.  Partners Value Fund

Alger Capital Apprec

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Alger Capital Appreciation are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, Alger Capital showed solid returns over the last few months and may actually be approaching a breakup point.

Partners Value

Risk-Adjusted Performance

Weakest

Over the last 90 days Partners Value Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Partners Value 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 Capital and Partners Value

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

The idea behind Alger Capital Appreciation and Partners Value Fund 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.