Correlation Between Altegris Futures and Upright Growth

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

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

Diversification Opportunities for Altegris Futures and Upright Growth

0.67

Correlation Coefficient

Altegris Futures  Upright Growth

Poor diversification

The 3 months correlation between Altegris and Upright is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Upright Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upright Growth and Altegris Futures 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 Altegris Futures Evolution are associated (or correlated) with Upright Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upright Growth has no effect on the direction of Altegris Futures i.e., Altegris Futures and Upright Growth go up and down completely randomly.

Pair Corralation between Altegris Futures and Upright Growth

Assuming the 90 days horizon Altegris Futures Evolution is expected to generate 0.19 times more return on investment than Upright Growth. However, Altegris Futures Evolution is 5.16 times less risky than Upright Growth. It trades about -0.02 of its potential returns per unit of risk. Upright Growth Fund is currently generating about -0.15 per unit of risk. If you would invest  662.00  in Altegris Futures Evolution on October 13, 2024 and sell it today you would lose (1.00) from holding Altegris Futures Evolution or give up 0.15% of portfolio value over 90 days.

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

Altegris Futures Evolution  vs.  Upright Growth Fund

Altegris Futures Evo

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Altegris Futures Evolution are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. 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.

Upright Growth

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Upright Growth Fund are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Upright Growth may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Altegris Futures and Upright Growth

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

The idea behind Altegris Futures Evolution and Upright Growth Fund 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 Commodity Directory module to find actively traded commodities issued by global exchanges.