Correlation Between Altegris Futures and Nationwide Global
Can any of the company-specific risk be diversified away by investing in both Altegris Futures and Nationwide Global 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 Nationwide Global 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 Nationwide Global Equity, you can compare the effects of market volatilities on Altegris Futures and Nationwide Global 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 Nationwide Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Nationwide Global.
Diversification Opportunities for Altegris Futures and Nationwide Global
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altegris and Nationwide is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Nationwide Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Global Equity 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 Nationwide Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Global Equity has no effect on the direction of Altegris Futures i.e., Altegris Futures and Nationwide Global go up and down completely randomly.
Pair Corralation between Altegris Futures and Nationwide Global
Assuming the 90 days horizon Altegris Futures is expected to generate 5.05 times less return on investment than Nationwide Global. But when comparing it to its historical volatility, Altegris Futures Evolution is 1.52 times less risky than Nationwide Global. It trades about 0.03 of its potential returns per unit of risk. Nationwide Global Equity is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,785 in Nationwide Global Equity on September 12, 2024 and sell it today you would earn a total of 675.00 from holding Nationwide Global Equity or generate 37.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altegris Futures Evolution vs. Nationwide Global Equity
Performance |
| Timeline |
| Altegris Futures Evo |
| Nationwide Global Equity |
Altegris Futures and Nationwide Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Nationwide Global
The main advantage of trading using opposite Altegris Futures and Nationwide Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures position performs unexpectedly, Nationwide Global 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 Nationwide Global will offset losses from the drop in Nationwide Global'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 |
| Nationwide Global vs. Fa 529 Aggressive | Nationwide Global vs. Siit High Yield | Nationwide Global vs. California High Yield Municipal | Nationwide Global vs. Intal High Relative |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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