Correlation Between Ab Municipal and Altegris Futures
Can any of the company-specific risk be diversified away by investing in both Ab Municipal 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 Ab Municipal and Altegris Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Municipal Bond and Altegris Futures Evolution, you can compare the effects of market volatilities on Ab Municipal 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 Ab Municipal with a short position of Altegris Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Altegris Futures.
Diversification Opportunities for Ab Municipal and Altegris Futures
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AUNCX and Altegris is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond 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 Ab Municipal 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 Ab Municipal Bond 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 Ab Municipal i.e., Ab Municipal and Altegris Futures go up and down completely randomly.
Pair Corralation between Ab Municipal and Altegris Futures
Assuming the 90 days horizon Ab Municipal is expected to generate 2.98 times less return on investment than Altegris Futures. But when comparing it to its historical volatility, Ab Municipal Bond is 5.59 times less risky than Altegris Futures. It trades about 0.41 of its potential returns per unit of risk. Altegris Futures Evolution is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Altegris Futures Evolution on July 22, 2025 and sell it today you would earn a total of 54.00 from holding Altegris Futures Evolution or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Municipal Bond vs. Altegris Futures Evolution
Performance |
| Timeline |
| Ab Municipal Bond |
| Altegris Futures Evo |
Ab Municipal and Altegris Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Altegris Futures
The main advantage of trading using opposite Ab Municipal and Altegris Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal 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.| Ab Municipal vs. Ab Global E | Ab Municipal vs. Ab Global E | Ab Municipal vs. Ab Global E | Ab Municipal vs. Ab All Market |
| Altegris Futures vs. Nuveen Large Cap | Altegris Futures vs. Qs Large Cap | Altegris Futures vs. Dana Large Cap | Altegris Futures vs. Transamerica Large Cap |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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