Correlation Between IMGP DBi and Altrius Global

Can any of the company-specific risk be diversified away by investing in both IMGP DBi and Altrius Global 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 IMGP DBi and Altrius Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between iMGP DBi Managed and Altrius Global Dividend, you can compare the effects of market volatilities on IMGP DBi and Altrius Global 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 IMGP DBi with a short position of Altrius Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMGP DBi and Altrius Global.

Diversification Opportunities for IMGP DBi and Altrius Global

-0.61

Correlation Coefficient

IMGP DBi  Altrius Global

Excellent diversification

The 3 months correlation between IMGP and Altrius is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding iMGP DBi Managed and Altrius Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altrius Global Dividend and IMGP DBi 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 iMGP DBi Managed are associated (or correlated) with Altrius Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altrius Global Dividend has no effect on the direction of IMGP DBi i.e., IMGP DBi and Altrius Global go up and down completely randomly.

Pair Corralation between IMGP DBi and Altrius Global

Given the investment horizon of 90 days iMGP DBi Managed is expected to under-perform the Altrius Global. But the etf apears to be less risky and, when comparing its historical volatility, iMGP DBi Managed is 1.17 times less risky than Altrius Global. The etf trades about -0.06 of its potential returns per unit of risk. The Altrius Global Dividend is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  3,136  in Altrius Global Dividend on December 28, 2024 and sell it today you would earn a total of  351.00  from holding Altrius Global Dividend or generate 11.19% return on investment over 90 days.

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

iMGP DBi Managed  vs.  Altrius Global Dividend

iMGP DBi Managed

Risk-Adjusted Performance

Very Weak

Over the last 90 days iMGP DBi Managed has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, IMGP DBi is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Altrius Global Dividend

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Altrius Global Dividend are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Altrius Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with IMGP DBi and Altrius Global

The main advantage of trading using opposite IMGP DBi and Altrius Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMGP DBi position performs unexpectedly, Altrius Global 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 Altrius Global will offset losses from the drop in Altrius Global's long position.

The idea behind iMGP DBi Managed and Altrius Global Dividend 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.