Correlation Between Altegris Futures and Precious Metals
Can any of the company-specific risk be diversified away by investing in both Altegris Futures and Precious Metals 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 Precious Metals 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 Precious Metals And, you can compare the effects of market volatilities on Altegris Futures and Precious Metals 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 Precious Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Precious Metals.
Diversification Opportunities for Altegris Futures and Precious Metals
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altegris and Precious is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Precious Metals And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precious Metals And 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 Precious Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precious Metals And has no effect on the direction of Altegris Futures i.e., Altegris Futures and Precious Metals go up and down completely randomly.
Pair Corralation between Altegris Futures and Precious Metals
Assuming the 90 days horizon Altegris Futures Evolution is expected to under-perform the Precious Metals. But the mutual fund apears to be less risky and, when comparing its historical volatility, Altegris Futures Evolution is 3.35 times less risky than Precious Metals. The mutual fund trades about -0.08 of its potential returns per unit of risk. The Precious Metals And is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,933 in Precious Metals And on October 20, 2024 and sell it today you would earn a total of 151.00 from holding Precious Metals And or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altegris Futures Evolution vs. Precious Metals And
Performance |
| Timeline |
| Altegris Futures Evo |
| Precious Metals And |
Altegris Futures and Precious Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Precious Metals
The main advantage of trading using opposite Altegris Futures and Precious Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures position performs unexpectedly, Precious Metals 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 Precious Metals will offset losses from the drop in Precious Metals' 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 |
| Precious Metals vs. Altegris Futures Evolution | Precious Metals vs. Aqr Managed Futures | Precious Metals vs. Guidepath Managed Futures | Precious Metals vs. Short Duration 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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