Correlation Between Short Duration and Astor Star
Can any of the company-specific risk be diversified away by investing in both Short Duration and Astor Star 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 Short Duration and Astor Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Duration Inflation and Astor Star Fund, you can compare the effects of market volatilities on Short Duration and Astor Star 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 Short Duration with a short position of Astor Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Duration and Astor Star.
Diversification Opportunities for Short Duration and Astor Star
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Short and Astor is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Short Duration Inflation and Astor Star Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Star Fund and Short Duration 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 Short Duration Inflation are associated (or correlated) with Astor Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Star Fund has no effect on the direction of Short Duration i.e., Short Duration and Astor Star go up and down completely randomly.
Pair Corralation between Short Duration and Astor Star
Assuming the 90 days horizon Short Duration is expected to generate 23.41 times less return on investment than Astor Star. But when comparing it to its historical volatility, Short Duration Inflation is 3.95 times less risky than Astor Star. It trades about 0.04 of its potential returns per unit of risk. Astor Star Fund is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,333 in Astor Star Fund on August 28, 2024 and sell it today you would earn a total of 124.00 from holding Astor Star Fund or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Short Duration Inflation vs. Astor Star Fund
Performance |
| Timeline |
| Short Duration Inflation |
| Astor Star Fund |
Short Duration and Astor Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short Duration and Astor Star
The main advantage of trading using opposite Short Duration and Astor Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Duration position performs unexpectedly, Astor Star 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 Star will offset losses from the drop in Astor Star's long position.| Short Duration vs. Inflation Adjusted Bond Fund | Short Duration vs. Diversified Bond Fund | Short Duration vs. Short Duration Fund | Short Duration vs. Core Plus Fund |
| Astor Star vs. Astor Longshort Fund | Astor Star vs. Astor Longshort Fund | Astor Star vs. Fidelity Balanced Fund | Astor Star vs. Thrivent Moderate Allocation |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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