Correlation Between Guggenheim Managed and Altegris Futures
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed 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 Guggenheim Managed and Altegris Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Managed Futures and Altegris Futures Evolution, you can compare the effects of market volatilities on Guggenheim Managed 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 Guggenheim Managed with a short position of Altegris Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Altegris Futures.
Diversification Opportunities for Guggenheim Managed and Altegris Futures
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guggenheim and Altegris is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures 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 Guggenheim Managed 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 Guggenheim Managed Futures 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 Guggenheim Managed i.e., Guggenheim Managed and Altegris Futures go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Altegris Futures
Assuming the 90 days horizon Guggenheim Managed Futures is expected to generate 0.8 times more return on investment than Altegris Futures. However, Guggenheim Managed Futures is 1.25 times less risky than Altegris Futures. It trades about 0.18 of its potential returns per unit of risk. Altegris Futures Evolution is currently generating about -0.18 per unit of risk. If you would invest 2,019 in Guggenheim Managed Futures on October 10, 2024 and sell it today you would earn a total of 43.00 from holding Guggenheim Managed Futures or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Altegris Futures Evolution
Performance |
| Timeline |
| Guggenheim Managed |
| Altegris Futures Evo |
Guggenheim Managed and Altegris Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Altegris Futures
The main advantage of trading using opposite Guggenheim Managed and Altegris Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed 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.| Guggenheim Managed vs. Franklin Government Money | Guggenheim Managed vs. Ab Impact Municipal | Guggenheim Managed vs. Gamco Global Telecommunications | Guggenheim Managed vs. Dws Government Money |
| Altegris Futures vs. Rationalpier 88 Convertible | Altegris Futures vs. Lord Abbett Vertible | Altegris Futures vs. Gabelli Convertible And | Altegris Futures vs. Virtus Convertible |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| 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 |