Correlation Between Cmg Ultra and Altegris Futures

Can any of the company-specific risk be diversified away by investing in both Cmg Ultra 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 Cmg Ultra and Altegris Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cmg Ultra Short and Altegris Futures Evolution, you can compare the effects of market volatilities on Cmg Ultra 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 Cmg Ultra with a short position of Altegris Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cmg Ultra and Altegris Futures.

Diversification Opportunities for Cmg Ultra and Altegris Futures

-0.81

Correlation Coefficient

Cmg Ultra  Altegris Futures

Pay attention - limited upside

The 3 months correlation between Cmg and Altegris is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cmg Ultra Short 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 Cmg Ultra 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 Cmg Ultra Short 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 Cmg Ultra i.e., Cmg Ultra and Altegris Futures go up and down completely randomly.

Pair Corralation between Cmg Ultra and Altegris Futures

Assuming the 90 days horizon Cmg Ultra is expected to generate 5.65 times less return on investment than Altegris Futures. But when comparing it to its historical volatility, Cmg Ultra Short is 17.84 times less risky than Altegris Futures. It trades about 0.22 of its potential returns per unit of risk. Altegris Futures Evolution is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  680.00  in Altegris Futures Evolution on September 16, 2024 and sell it today you would earn a total of  4.00  from holding Altegris Futures Evolution or generate 0.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Cmg Ultra Short  vs.  Altegris Futures Evolution

Cmg Ultra Short

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cmg Ultra Short are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Cmg Ultra is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Altegris Futures Evo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Altegris Futures Evolution has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Altegris Futures is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cmg Ultra and Altegris Futures

The main advantage of trading using opposite Cmg Ultra and Altegris Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cmg Ultra 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.

The idea behind Cmg Ultra Short and Altegris Futures Evolution pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.