Correlation Between Altrius Global and Madison ETFs

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

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

Diversification Opportunities for Altrius Global and Madison ETFs

0.52

Correlation Coefficient

Altrius Global  Madison ETFs

Very weak diversification

The 3 months correlation between Altrius and Madison is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Altrius Global Dividend and Madison ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Madison ETFs Trust and Altrius Global 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 Altrius Global Dividend are associated (or correlated) with Madison ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Madison ETFs Trust has no effect on the direction of Altrius Global i.e., Altrius Global and Madison ETFs go up and down completely randomly.

Pair Corralation between Altrius Global and Madison ETFs

Given the investment horizon of 90 days Altrius Global Dividend is expected to generate 0.91 times more return on investment than Madison ETFs. However, Altrius Global Dividend is 1.1 times less risky than Madison ETFs. It trades about 0.28 of its potential returns per unit of risk. Madison ETFs Trust is currently generating about 0.03 per unit of risk. If you would invest  3,142  in Altrius Global Dividend on December 21, 2024 and sell it today you would earn a total of  377.50  from holding Altrius Global Dividend or generate 12.01% return on investment over 90 days.

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

Altrius Global Dividend  vs.  Madison ETFs Trust

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 21 (%) 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.

Madison ETFs Trust

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Madison ETFs Trust are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Madison ETFs is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Altrius Global and Madison ETFs

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

The idea behind Altrius Global Dividend and Madison ETFs Trust 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.