Correlation Between Alger Spectra and Global Diversified

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

By analyzing existing cross correlation between Alger Spectra and Global Diversified Income, you can compare the effects of market volatilities on Alger Spectra and Global Diversified 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 Global Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Spectra and Global Diversified.

Diversification Opportunities for Alger Spectra and Global Diversified

0.95

Correlation Coefficient

Alger Spectra  Global Diversified

Almost no diversification

The 3 months correlation between Alger and Global is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Alger Spectra and Global Diversified Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Diversified Income 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 are associated (or correlated) with Global Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Diversified Income has no effect on the direction of Alger Spectra i.e., Alger Spectra and Global Diversified go up and down completely randomly.

Pair Corralation between Alger Spectra and Global Diversified

Assuming the 90 days horizon Alger Spectra is expected to generate 6.61 times more return on investment than Global Diversified. However, Alger Spectra is 6.61 times more volatile than Global Diversified Income. It trades about 0.3 of its potential returns per unit of risk. Global Diversified Income is currently generating about 0.28 per unit of risk. If you would invest  3,124  in Alger Spectra on May 21, 2025 and sell it today you would earn a total of  621.00  from holding Alger Spectra or generate 19.88% return on investment over 90 days.

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

Alger Spectra  vs.  Global Diversified Income

Alger Spectra

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alger Spectra are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Alger Spectra showed solid returns over the last few months and may actually be approaching a breakup point.

Global Diversified Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global Diversified Income are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Global Diversified 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 Spectra and Global Diversified

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

The idea behind Alger Spectra and Global Diversified Income 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.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.