Correlation Between Dunham High and Altegris Futures
Can any of the company-specific risk be diversified away by investing in both Dunham 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 Dunham 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 Dunham High Yield and Altegris Futures Evolution, you can compare the effects of market volatilities on Dunham 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 Dunham High with a short position of Altegris Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Altegris Futures.
Diversification Opportunities for Dunham High and Altegris Futures
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dunham and Altegris is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield 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 Dunham 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 Dunham High Yield 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 Dunham High i.e., Dunham High and Altegris Futures go up and down completely randomly.
Pair Corralation between Dunham High and Altegris Futures
Assuming the 90 days horizon Dunham High Yield is expected to under-perform the Altegris Futures. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dunham High Yield is 1.2 times less risky than Altegris Futures. The mutual fund trades about -0.27 of its potential returns per unit of risk. The Altegris Futures Evolution is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 663.00 in Altegris Futures Evolution on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Altegris Futures Evolution or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham High Yield vs. Altegris Futures Evolution
Performance |
| Timeline |
| Dunham High Yield |
| Altegris Futures Evo |
Dunham High and Altegris Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Altegris Futures
The main advantage of trading using opposite Dunham High and Altegris Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham 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.| Dunham High vs. Lord Abbett Diversified | Dunham High vs. Wells Fargo Diversified | Dunham High vs. Guidepath Conservative Income | Dunham High vs. Jhancock Diversified Macro |
| Altegris Futures vs. Siit High Yield | Altegris Futures vs. Americafirst Monthly Risk On | Altegris Futures vs. Mesirow Financial High | Altegris Futures vs. Dunham 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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