Correlation Between AltShares Trust and ForgeRock

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

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

Diversification Opportunities for AltShares Trust and ForgeRock

0.0

Correlation Coefficient

AltShares Trust  ForgeRock

Pay attention - limited upside

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

Pair Corralation between AltShares Trust and ForgeRock

If you would invest (100.00) in ForgeRock on January 30, 2025 and sell it today you would earn a total of  100.00  from holding ForgeRock 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

AltShares Trust   vs.  ForgeRock

AltShares Trust

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AltShares Trust are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, AltShares Trust is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

ForgeRock

Risk-Adjusted Performance

Very Weak

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

Pair Trading with AltShares Trust and ForgeRock

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

The idea behind AltShares Trust and ForgeRock 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.

Check out your portfolio center.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.