Correlation Between Nuveen Strategic and Altegris Futures
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Altegris Futures 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 Nuveen Strategic and Altegris Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Strategic Municipal and Altegris Futures Evolution, you can compare the effects of market volatilities on Nuveen Strategic and Altegris Futures 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 Nuveen Strategic with a short position of Altegris Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Altegris Futures.
Diversification Opportunities for Nuveen Strategic and Altegris Futures
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nuveen and Altegris is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Altegris Futures Evolution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altegris Futures Evo and Nuveen Strategic 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 Nuveen Strategic Municipal are associated (or correlated) with Altegris Futures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altegris Futures Evo has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Altegris Futures go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Altegris Futures
Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 0.53 times more return on investment than Altegris Futures. However, Nuveen Strategic Municipal is 1.89 times less risky than Altegris Futures. It trades about 0.13 of its potential returns per unit of risk. Altegris Futures Evolution is currently generating about -0.08 per unit of risk. If you would invest 991.00 in Nuveen Strategic Municipal on October 25, 2024 and sell it today you would earn a total of 6.00 from holding Nuveen Strategic Municipal or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Altegris Futures Evolution
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Altegris Futures Evo |
Nuveen Strategic and Altegris Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Altegris Futures
The main advantage of trading using opposite Nuveen Strategic and Altegris Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Altegris Futures 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 Altegris Futures will offset losses from the drop in Altegris Futures' long position.| Nuveen Strategic vs. Vanguard Financials Index | Nuveen Strategic vs. Davis Financial Fund | Nuveen Strategic vs. Financials Ultrasector Profund | Nuveen Strategic vs. Fidelity Advisor Financial |
| Altegris Futures vs. Transamerica High Yield | Altegris Futures vs. Tiaa Cref High Yield Fund | Altegris Futures vs. Pace High Yield | Altegris Futures vs. Prudential High Yield |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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