Correlation Between Ab Ohio and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Ab Ohio and Astor Longshort 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 Ohio and Astor Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Ohio Portfolio and Astor Longshort Fund, you can compare the effects of market volatilities on Ab Ohio and Astor Longshort 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 Ohio with a short position of Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Ohio and Astor Longshort.
Diversification Opportunities for Ab Ohio and Astor Longshort
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between AOHCX and Astor is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ab Ohio Portfolio and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort and Ab Ohio 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 Ohio Portfolio are associated (or correlated) with Astor Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Longshort has no effect on the direction of Ab Ohio i.e., Ab Ohio and Astor Longshort go up and down completely randomly.
Pair Corralation between Ab Ohio and Astor Longshort
Assuming the 90 days horizon Ab Ohio is expected to generate 3.06 times less return on investment than Astor Longshort. But when comparing it to its historical volatility, Ab Ohio Portfolio is 2.09 times less risky than Astor Longshort. It trades about 0.1 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,328 in Astor Longshort Fund on September 12, 2024 and sell it today you would earn a total of 99.00 from holding Astor Longshort Fund or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Ohio Portfolio vs. Astor Longshort Fund
Performance |
| Timeline |
| Ab Ohio Portfolio |
| Astor Longshort |
Ab Ohio and Astor Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Ohio and Astor Longshort
The main advantage of trading using opposite Ab Ohio and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Ohio position performs unexpectedly, Astor Longshort 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 Astor Longshort will offset losses from the drop in Astor Longshort's long position.| Ab Ohio vs. Red Oak Technology | Ab Ohio vs. Goldman Sachs Technology | Ab Ohio vs. Allianzgi Technology Fund | Ab Ohio vs. Technology Ultrasector Profund |
| Astor Longshort vs. SCOR PK | Astor Longshort vs. Morningstar Unconstrained Allocation | Astor Longshort vs. Via Renewables | Astor Longshort vs. Bondbloxx ETF Trust |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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