Correlation Between Ab High and Altegris Futures
Can any of the company-specific risk be diversified away by investing in both Ab High 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 High 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 High Income and Altegris Futures Evolution, you can compare the effects of market volatilities on Ab High 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 High with a short position of Altegris Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Altegris Futures.
Diversification Opportunities for Ab High and Altegris Futures
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGDAX and Altegris is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income 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 High 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 High Income 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 High i.e., Ab High and Altegris Futures go up and down completely randomly.
Pair Corralation between Ab High and Altegris Futures
Assuming the 90 days horizon Ab High Income is expected to generate 0.35 times more return on investment than Altegris Futures. However, Ab High Income is 2.87 times less risky than Altegris Futures. It trades about 0.21 of its potential returns per unit of risk. Altegris Futures Evolution is currently generating about -0.09 per unit of risk. If you would invest 665.00 in Ab High Income on September 3, 2024 and sell it today you would earn a total of 40.00 from holding Ab High Income or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab High Income vs. Altegris Futures Evolution
Performance |
| Timeline |
| Ab High Income |
| Altegris Futures Evo |
Ab High and Altegris Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Altegris Futures
The main advantage of trading using opposite Ab High and Altegris Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High 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 High vs. John Hancock Government | Ab High vs. Fidelity Series Government | Ab High vs. Us Government Securities | Ab High vs. Us Government Securities |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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