Correlation Between Ab Impact and Altegris Futures
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Altegris Futures 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 Ab Impact and Altegris Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Altegris Futures Evolution, you can compare the effects of market volatilities on Ab Impact and Altegris Futures 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 Ab Impact with a short position of Altegris Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Altegris Futures.
Diversification Opportunities for Ab Impact and Altegris Futures
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABIMX and Altegris is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Altegris Futures Evolution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altegris Futures Evo and Ab Impact 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 Ab Impact Municipal are associated (or correlated) with Altegris Futures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altegris Futures Evo has no effect on the direction of Ab Impact i.e., Ab Impact and Altegris Futures go up and down completely randomly.
Pair Corralation between Ab Impact and Altegris Futures
Assuming the 90 days horizon Ab Impact Municipal is expected to generate 0.58 times more return on investment than Altegris Futures. However, Ab Impact Municipal is 1.72 times less risky than Altegris Futures. It trades about 0.08 of its potential returns per unit of risk. Altegris Futures Evolution is currently generating about -0.08 per unit of risk. If you would invest 969.00 in Ab Impact Municipal on October 25, 2024 and sell it today you would earn a total of 4.00 from holding Ab Impact Municipal or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Impact Municipal vs. Altegris Futures Evolution
Performance |
| Timeline |
| Ab Impact Municipal |
| Altegris Futures Evo |
Ab Impact and Altegris Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Altegris Futures
The main advantage of trading using opposite Ab Impact and Altegris Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Altegris Futures 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 Altegris Futures will offset losses from the drop in Altegris Futures' long position.| Ab Impact vs. Tiaa Cref Real Estate | Ab Impact vs. Simt Real Estate | Ab Impact vs. Commonwealth Real Estate | Ab Impact vs. Nexpoint Real Estate |
| Altegris Futures vs. Transamerica High Yield | Altegris Futures vs. Tiaa Cref High Yield Fund | Altegris Futures vs. Pace High Yield | Altegris Futures vs. Prudential High Yield |
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 Stocks Directory module to find actively traded stocks across global markets.
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