Correlation Between Altegris Futures and Stone Ridge
Can any of the company-specific risk be diversified away by investing in both Altegris Futures and Stone Ridge 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 Stone Ridge 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 Stone Ridge Diversified, you can compare the effects of market volatilities on Altegris Futures and Stone Ridge 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 Stone Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Stone Ridge.
Diversification Opportunities for Altegris Futures and Stone Ridge
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Altegris and Stone is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Stone Ridge Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Ridge Diversified 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 Stone Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Ridge Diversified has no effect on the direction of Altegris Futures i.e., Altegris Futures and Stone Ridge go up and down completely randomly.
Pair Corralation between Altegris Futures and Stone Ridge
Assuming the 90 days horizon Altegris Futures is expected to generate 50.11 times less return on investment than Stone Ridge. In addition to that, Altegris Futures is 2.34 times more volatile than Stone Ridge Diversified. It trades about 0.0 of its total potential returns per unit of risk. Stone Ridge Diversified is currently generating about 0.24 per unit of volatility. If you would invest 1,046 in Stone Ridge Diversified on October 30, 2024 and sell it today you would earn a total of 18.00 from holding Stone Ridge Diversified or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altegris Futures Evolution vs. Stone Ridge Diversified
Performance |
| Timeline |
| Altegris Futures Evo |
| Stone Ridge Diversified |
Altegris Futures and Stone Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Stone Ridge
The main advantage of trading using opposite Altegris Futures and Stone Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures position performs unexpectedly, Stone Ridge 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 Stone Ridge will offset losses from the drop in Stone Ridge's long position.| Altegris Futures vs. Valic Company I | Altegris Futures vs. Lsv Small Cap | Altegris Futures vs. Applied Finance Explorer | Altegris Futures vs. Walden Smid Cap |
| Stone Ridge vs. Siit Ultra Short | Stone Ridge vs. Oakhurst Short Duration | Stone Ridge vs. Transamerica Short Term Bond | Stone Ridge vs. Barings Active Short |
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 Stocks Directory module to find actively traded stocks across global markets.
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