Correlation Between Altegris Futures and Balanced Fund
Can any of the company-specific risk be diversified away by investing in both Altegris Futures and Balanced Fund 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 Balanced Fund 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 Balanced Fund Retail, you can compare the effects of market volatilities on Altegris Futures and Balanced Fund 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 Balanced Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Balanced Fund.
Diversification Opportunities for Altegris Futures and Balanced Fund
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Altegris and Balanced is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Balanced Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Fund Retail 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 Balanced Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Fund Retail has no effect on the direction of Altegris Futures i.e., Altegris Futures and Balanced Fund go up and down completely randomly.
Pair Corralation between Altegris Futures and Balanced Fund
Assuming the 90 days horizon Altegris Futures is expected to generate 6.17 times less return on investment than Balanced Fund. But when comparing it to its historical volatility, Altegris Futures Evolution is 1.1 times less risky than Balanced Fund. It trades about 0.02 of its potential returns per unit of risk. Balanced Fund Retail is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,245 in Balanced Fund Retail on September 12, 2024 and sell it today you would earn a total of 219.00 from holding Balanced Fund Retail or generate 17.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altegris Futures Evolution vs. Balanced Fund Retail
Performance |
| Timeline |
| Altegris Futures Evo |
| Balanced Fund Retail |
Altegris Futures and Balanced Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Balanced Fund
The main advantage of trading using opposite Altegris Futures and Balanced Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures position performs unexpectedly, Balanced Fund 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 Balanced Fund will offset losses from the drop in Balanced Fund'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 |
| Balanced Fund vs. Muirfield Fund Retail | Balanced Fund vs. Dynamic Growth Fund | Balanced Fund vs. Infrastructure Fund Retail | Balanced Fund vs. Quantex Fund Retail |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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