Correlation Between Altegris Futures and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Altegris Futures and Simt Multi-asset 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 Simt Multi-asset 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 Simt Multi Asset Inflation, you can compare the effects of market volatilities on Altegris Futures and Simt Multi-asset 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 Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Simt Multi-asset.
Diversification Opportunities for Altegris Futures and Simt Multi-asset
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altegris and Simt is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Simt Multi Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Altegris Futures i.e., Altegris Futures and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Altegris Futures and Simt Multi-asset
Assuming the 90 days horizon Altegris Futures Evolution is expected to under-perform the Simt Multi-asset. In addition to that, Altegris Futures is 2.77 times more volatile than Simt Multi Asset Inflation. It trades about -0.04 of its total potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.52 per unit of volatility. If you would invest 768.00 in Simt Multi Asset Inflation on November 4, 2024 and sell it today you would earn a total of 15.00 from holding Simt Multi Asset Inflation or generate 1.95% 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. Simt Multi Asset Inflation
Performance |
| Timeline |
| Altegris Futures Evo |
| Simt Multi Asset |
Altegris Futures and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Simt Multi-asset
The main advantage of trading using opposite Altegris Futures and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset's long position.| Altegris Futures vs. Rreef Property Trust | Altegris Futures vs. Tiaa Cref Real Estate | Altegris Futures vs. Baron Real Estate | Altegris Futures vs. Forum Real Estate |
| Simt Multi-asset vs. Calvert Developed Market | Simt Multi-asset vs. Aqr Sustainable Long Short | Simt Multi-asset vs. Aqr Equity Market | Simt Multi-asset vs. Mid Cap 15x Strategy |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |