Correlation Between Alger Spectra and Segall Bryant

Can any of the company-specific risk be diversified away by investing in both Alger Spectra and Segall Bryant 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 Segall Bryant 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 Segall Bryant Hamill, you can compare the effects of market volatilities on Alger Spectra and Segall Bryant 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 Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Spectra and Segall Bryant.

Diversification Opportunities for Alger Spectra and Segall Bryant

0.93

Correlation Coefficient

Alger Spectra  Segall Bryant

Almost no diversification

The 3 months correlation between Alger and Segall is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Alger Spectra Fund and Segall Bryant Hamill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segall Bryant Hamill 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 Segall Bryant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segall Bryant Hamill has no effect on the direction of Alger Spectra i.e., Alger Spectra and Segall Bryant go up and down completely randomly.

Pair Corralation between Alger Spectra and Segall Bryant

Assuming the 90 days horizon Alger Spectra Fund is expected to generate 11.57 times more return on investment than Segall Bryant. However, Alger Spectra is 11.57 times more volatile than Segall Bryant Hamill. It trades about 0.2 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.13 per unit of risk. If you would invest  3,470  in Alger Spectra Fund on June 29, 2025 and sell it today you would earn a total of  486.00  from holding Alger Spectra Fund or generate 14.01% return on investment over 90 days.

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

Alger Spectra Fund  vs.  Segall Bryant Hamill

Alger Spectra

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Alger Spectra Fund are ranked lower than 15 (%) 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.

Segall Bryant Hamill

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Segall Bryant Hamill are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Segall Bryant 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 Segall Bryant

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

The idea behind Alger Spectra Fund and Segall Bryant Hamill 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.