Correlation Between Aspen Managed and Altegris Gsa

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

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

Diversification Opportunities for Aspen Managed and Altegris Gsa

0.0

Correlation Coefficient

Aspen Managed  Altegris Gsa

Pay attention - limited upside

The 3 months correlation between Aspen and Altegris is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Managed Futures and Altegris Gsa Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altegris Gsa Trend and Aspen Managed 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 Aspen Managed Futures are associated (or correlated) with Altegris Gsa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altegris Gsa Trend has no effect on the direction of Aspen Managed i.e., Aspen Managed and Altegris Gsa go up and down completely randomly.

Pair Corralation between Aspen Managed and Altegris Gsa

If you would invest (100.00) in Altegris Gsa Trend on February 5, 2024 and sell it today you would earn a total of  100.00  from holding Altegris Gsa Trend or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aspen Managed Futures  vs.  Altegris Gsa Trend

Aspen Managed Futures

Risk-Adjusted Performance

0 of 100

Very Weak

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

Altegris Gsa Trend

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Aspen Managed and Altegris Gsa

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

The idea behind Aspen Managed Futures and Altegris Gsa Trend 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.