Correlation Between Altegris Futures and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Altegris Futures and Massmutual Select 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 Massmutual Select 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 Massmutual Select Strategic, you can compare the effects of market volatilities on Altegris Futures and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Massmutual Select.
Diversification Opportunities for Altegris Futures and Massmutual Select
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Altegris and Massmutual is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Massmutual Select Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select 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 Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select has no effect on the direction of Altegris Futures i.e., Altegris Futures and Massmutual Select go up and down completely randomly.
Pair Corralation between Altegris Futures and Massmutual Select
If you would invest 881.00 in Massmutual Select Strategic on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Massmutual Select Strategic or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Altegris Futures Evolution vs. Massmutual Select Strategic
Performance |
| Timeline |
| Altegris Futures Evo |
| Massmutual Select |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altegris Futures and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Massmutual Select
The main advantage of trading using opposite Altegris Futures and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| Altegris Futures vs. Angel Oak Financial | Altegris Futures vs. Davis Financial Fund | Altegris Futures vs. Gabelli Global Financial | Altegris Futures vs. Fidelity Advisor 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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