Correlation Between Altegris Futures and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Altegris Futures and Amg Gwk 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 Amg Gwk 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 Amg Gwk Smallmid, you can compare the effects of market volatilities on Altegris Futures and Amg Gwk 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 Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Amg Gwk.
Diversification Opportunities for Altegris Futures and Amg Gwk
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altegris and Amg is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Amg Gwk Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Smallmid 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 Amg Gwk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Gwk Smallmid has no effect on the direction of Altegris Futures i.e., Altegris Futures and Amg Gwk go up and down completely randomly.
Pair Corralation between Altegris Futures and Amg Gwk
Assuming the 90 days horizon Altegris Futures Evolution is expected to under-perform the Amg Gwk. But the mutual fund apears to be less risky and, when comparing its historical volatility, Altegris Futures Evolution is 1.6 times less risky than Amg Gwk. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Amg Gwk Smallmid is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,885 in Amg Gwk Smallmid on November 3, 2024 and sell it today you would earn a total of 97.00 from holding Amg Gwk Smallmid or generate 5.15% 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. Amg Gwk Smallmid
Performance |
| Timeline |
| Altegris Futures Evo |
| Amg Gwk Smallmid |
Altegris Futures and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Amg Gwk
The main advantage of trading using opposite Altegris Futures and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures position performs unexpectedly, Amg Gwk 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 Amg Gwk will offset losses from the drop in Amg Gwk's long position.| Altegris Futures vs. Ridgeworth Seix Government | Altegris Futures vs. Dws Government Money | Altegris Futures vs. Payden Government Fund | Altegris Futures vs. Dreyfus Government Cash |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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