Correlation Between Altegris Futures and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Altegris Futures and Credit Suisse 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 Credit Suisse 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 Credit Suisse Multialternative, you can compare the effects of market volatilities on Altegris Futures and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Credit Suisse.
Diversification Opportunities for Altegris Futures and Credit Suisse
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Altegris and Credit is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Multia has no effect on the direction of Altegris Futures i.e., Altegris Futures and Credit Suisse go up and down completely randomly.
Pair Corralation between Altegris Futures and Credit Suisse
Assuming the 90 days horizon Altegris Futures Evolution is expected to under-perform the Credit Suisse. In addition to that, Altegris Futures is 2.34 times more volatile than Credit Suisse Multialternative. It trades about -0.08 of its total potential returns per unit of risk. Credit Suisse Multialternative is currently generating about 0.13 per unit of volatility. If you would invest 816.00 in Credit Suisse Multialternative on October 25, 2024 and sell it today you would earn a total of 4.00 from holding Credit Suisse Multialternative or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altegris Futures Evolution vs. Credit Suisse Multialternative
Performance |
| Timeline |
| Altegris Futures Evo |
| Credit Suisse Multia |
Altegris Futures and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Credit Suisse
The main advantage of trading using opposite Altegris Futures and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Altegris Futures vs. Transamerica High Yield | Altegris Futures vs. Tiaa Cref High Yield Fund | Altegris Futures vs. Pace High Yield | Altegris Futures vs. Prudential High Yield |
| Credit Suisse vs. Blackstone Secured Lending | Credit Suisse vs. Fidelity Advisor Financial | Credit Suisse vs. Putnam Global Financials | Credit Suisse vs. Rmb Mendon Financial |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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