Sometimes individuals invest in managed futures and expect consistent, steady returns from month-to-month and year-to-year; similar to rental property income. The reality is quite the contrary. Managed futures and CTAs are speculative investments (similar to Equities), and should not be relied on for “income.” Any investor that starts investing with…
Risk Statistics Standard Deviation -Standard deviation is a measure of how spread out values are in a series of returns. In calculating the standard deviation, it gives investors a “standard” way of knowing what is normal, and what is outside the range of normality. A lower standard deviation is better,…
As mentioned in our first part to this series, at aiSource we are big believers in analyzing a CTA’s daily return data. In our first part, we displayed how we use a CTA’s daily return data to make a frequency distribution of daily returns. The frequency distribution gives us a…
Correlation – it’s a term most everyone is familiar with, especially when it comes to their investments. When aiSource speaks with investors, it seems that a vast majority of people put a strong emphasis on correlation, ultimately altering their decision to include/exclude a CTA from their CTA portfolio. The real…