Correlation Between Altegris Futures and Columbia Integrated
Can any of the company-specific risk be diversified away by investing in both Altegris Futures and Columbia Integrated 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 Columbia Integrated 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 Columbia Integrated Large, you can compare the effects of market volatilities on Altegris Futures and Columbia Integrated 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 Columbia Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Columbia Integrated.
Diversification Opportunities for Altegris Futures and Columbia Integrated
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altegris and Columbia is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Columbia Integrated Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Integrated Large 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 Columbia Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Integrated Large has no effect on the direction of Altegris Futures i.e., Altegris Futures and Columbia Integrated go up and down completely randomly.
Pair Corralation between Altegris Futures and Columbia Integrated
Assuming the 90 days horizon Altegris Futures is expected to generate 6.14 times less return on investment than Columbia Integrated. But when comparing it to its historical volatility, Altegris Futures Evolution is 1.59 times less risky than Columbia Integrated. It trades about 0.02 of its potential returns per unit of risk. Columbia Integrated Large is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,301 in Columbia Integrated Large on September 20, 2024 and sell it today you would earn a total of 120.00 from holding Columbia Integrated Large or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.28% |
| Values | Daily Returns |
Altegris Futures Evolution vs. Columbia Integrated Large
Performance |
| Timeline |
| Altegris Futures Evo |
| Columbia Integrated Large |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altegris Futures and Columbia Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Columbia Integrated
The main advantage of trading using opposite Altegris Futures and Columbia Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures position performs unexpectedly, Columbia Integrated 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 Columbia Integrated will offset losses from the drop in Columbia Integrated's long position.| Altegris Futures vs. 1919 Financial Services | Altegris Futures vs. Financials Ultrasector Profund | Altegris Futures vs. Vanguard Financials Index | Altegris Futures vs. Davis Financial Fund |
| Columbia Integrated vs. Goldman Sachs Inflation | Columbia Integrated vs. Ab Bond Inflation | Columbia Integrated vs. Altegris Futures Evolution | Columbia Integrated vs. American Funds Inflation |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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