Correlation Between Altegris Futures and Franklin High
Can any of the company-specific risk be diversified away by investing in both Altegris Futures and Franklin High 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 Franklin High 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 Franklin High Yield, you can compare the effects of market volatilities on Altegris Futures and Franklin High 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 Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Franklin High.
Diversification Opportunities for Altegris Futures and Franklin High
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altegris and Franklin is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Franklin High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Yield 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 Franklin High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin High Yield has no effect on the direction of Altegris Futures i.e., Altegris Futures and Franklin High go up and down completely randomly.
Pair Corralation between Altegris Futures and Franklin High
Assuming the 90 days horizon Altegris Futures Evolution is expected to under-perform the Franklin High. In addition to that, Altegris Futures is 1.89 times more volatile than Franklin High Yield. It trades about -0.08 of its total potential returns per unit of risk. Franklin High Yield is currently generating about 0.02 per unit of volatility. If you would invest 897.00 in Franklin High Yield on October 18, 2024 and sell it today you would earn a total of 6.00 from holding Franklin High Yield or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Altegris Futures Evolution vs. Franklin High Yield
Performance |
| Timeline |
| Altegris Futures Evo |
| Franklin High Yield |
Altegris Futures and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Franklin High
The main advantage of trading using opposite Altegris Futures and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures position performs unexpectedly, Franklin High 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 Franklin High will offset losses from the drop in Franklin High's long position.| Altegris Futures vs. Eip Growth And | Altegris Futures vs. Victory Rs Partners | Altegris Futures vs. Qs Large Cap | Altegris Futures vs. Omni Small Cap Value |
| Franklin High vs. Altegris Futures Evolution | Franklin High vs. Credit Suisse Multialternative | Franklin High vs. Tiaa Cref Inflation Linked Bond | Franklin High vs. Guidepath Managed Futures |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |