Correlation Between Altegris Futures and Dreyfus Technology
Can any of the company-specific risk be diversified away by investing in both Altegris Futures and Dreyfus Technology 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 Altegris Futures and Dreyfus Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altegris Futures Evolution and Dreyfus Technology Growth, you can compare the effects of market volatilities on Altegris Futures and Dreyfus Technology 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 Altegris Futures with a short position of Dreyfus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Dreyfus Technology.
Diversification Opportunities for Altegris Futures and Dreyfus Technology
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Altegris and Dreyfus is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Dreyfus Technology Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Technology Growth and Altegris Futures 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 Altegris Futures Evolution are associated (or correlated) with Dreyfus Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Technology Growth has no effect on the direction of Altegris Futures i.e., Altegris Futures and Dreyfus Technology go up and down completely randomly.
Pair Corralation between Altegris Futures and Dreyfus Technology
Assuming the 90 days horizon Altegris Futures Evolution is expected to generate 0.55 times more return on investment than Dreyfus Technology. However, Altegris Futures Evolution is 1.83 times less risky than Dreyfus Technology. It trades about -0.02 of its potential returns per unit of risk. Dreyfus Technology Growth is currently generating about -0.02 per unit of risk. If you would invest 691.00 in Altegris Futures Evolution on September 12, 2024 and sell it today you would lose (2.00) from holding Altegris Futures Evolution or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altegris Futures Evolution vs. Dreyfus Technology Growth
Performance |
| Timeline |
| Altegris Futures Evo |
| Dreyfus Technology Growth |
Altegris Futures and Dreyfus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Dreyfus Technology
The main advantage of trading using opposite Altegris Futures and Dreyfus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures position performs unexpectedly, Dreyfus Technology 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 Dreyfus Technology will offset losses from the drop in Dreyfus Technology's long position.| Altegris Futures vs. Dreyfus Technology Growth | Altegris Futures vs. Science Technology Fund | Altegris Futures vs. Icon Information Technology | Altegris Futures vs. Global Technology Portfolio |
| Dreyfus Technology vs. Vanguard Information Technology | Dreyfus Technology vs. Technology Portfolio Technology | Dreyfus Technology vs. Fidelity Select Semiconductors | Dreyfus Technology vs. Software And It |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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