Correlation Between Upright Growth and Altegris Futures

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

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

Diversification Opportunities for Upright Growth and Altegris Futures

0.72

Correlation Coefficient

Upright Growth  Altegris Futures

Poor diversification

The 3 months correlation between Upright and Altegris is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Upright Growth Fund 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 Upright Growth 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 Upright Growth Fund 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 Upright Growth i.e., Upright Growth and Altegris Futures go up and down completely randomly.

Pair Corralation between Upright Growth and Altegris Futures

Assuming the 90 days horizon Upright Growth Fund is expected to generate 2.59 times more return on investment than Altegris Futures. However, Upright Growth is 2.59 times more volatile than Altegris Futures Evolution. It trades about 0.03 of its potential returns per unit of risk. Altegris Futures Evolution is currently generating about 0.04 per unit of risk. If you would invest  899.00  in Upright Growth Fund on October 13, 2024 and sell it today you would earn a total of  175.00  from holding Upright Growth Fund or generate 19.47% return on investment over 90 days.

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

Upright Growth Fund  vs.  Altegris Futures Evolution

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.

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.

Pair Trading with Upright Growth and Altegris Futures

The main advantage of trading using opposite Upright Growth and Altegris Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upright Growth 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 Upright Growth Fund 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.