Correlation Between Altegris Futures and Nicholas
Can any of the company-specific risk be diversified away by investing in both Altegris Futures and Nicholas 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 Nicholas 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 Nicholas Ltd Edition, you can compare the effects of market volatilities on Altegris Futures and Nicholas 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 Nicholas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Nicholas.
Diversification Opportunities for Altegris Futures and Nicholas
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altegris and Nicholas is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Nicholas Ltd Edition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicholas Edition 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 Nicholas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicholas Edition has no effect on the direction of Altegris Futures i.e., Altegris Futures and Nicholas go up and down completely randomly.
Pair Corralation between Altegris Futures and Nicholas
Assuming the 90 days horizon Altegris Futures Evolution is expected to under-perform the Nicholas. But the mutual fund apears to be less risky and, when comparing its historical volatility, Altegris Futures Evolution is 2.06 times less risky than Nicholas. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Nicholas Ltd Edition is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,538 in Nicholas Ltd Edition on November 3, 2024 and sell it today you would earn a total of 250.00 from holding Nicholas Ltd Edition or generate 9.85% 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. Nicholas Ltd Edition
Performance |
| Timeline |
| Altegris Futures Evo |
| Nicholas Edition |
Altegris Futures and Nicholas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Nicholas
The main advantage of trading using opposite Altegris Futures and Nicholas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures position performs unexpectedly, Nicholas 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 Nicholas will offset losses from the drop in Nicholas' long position.| Altegris Futures vs. Columbia Global Technology | Altegris Futures vs. Technology Ultrasector Profund | Altegris Futures vs. Pgim Jennison Technology | Altegris Futures vs. Icon Information Technology |
| Nicholas vs. Global Diversified Income | Nicholas vs. Calvert Conservative Allocation | Nicholas vs. Tiaa Cref Lifestyle Conservative | Nicholas vs. Lord Abbett Diversified |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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