Correlation Between Astor Star and All Asset
Can any of the company-specific risk be diversified away by investing in both Astor Star and All Asset 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 Astor Star and All Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Star Fund and All Asset Fund, you can compare the effects of market volatilities on Astor Star and All Asset 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 Astor Star with a short position of All Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Star and All Asset.
Diversification Opportunities for Astor Star and All Asset
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astor and All is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Astor Star Fund and All Asset Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Asset Fund and Astor Star 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 Astor Star Fund are associated (or correlated) with All Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Asset Fund has no effect on the direction of Astor Star i.e., Astor Star and All Asset go up and down completely randomly.
Pair Corralation between Astor Star and All Asset
Assuming the 90 days horizon Astor Star Fund is expected to generate 1.43 times more return on investment than All Asset. However, Astor Star is 1.43 times more volatile than All Asset Fund. It trades about 0.08 of its potential returns per unit of risk. All Asset Fund is currently generating about 0.08 per unit of risk. If you would invest 1,392 in Astor Star Fund on August 31, 2024 and sell it today you would earn a total of 260.00 from holding Astor Star Fund or generate 18.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Astor Star Fund vs. All Asset Fund
Performance |
| Timeline |
| Astor Star Fund |
| All Asset Fund |
Astor Star and All Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Star and All Asset
The main advantage of trading using opposite Astor Star and All Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Star position performs unexpectedly, All Asset 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 All Asset will offset losses from the drop in All Asset's long position.| Astor Star vs. All Asset Fund | Astor Star vs. Pimco All Asset | Astor Star vs. All Asset Fund | Astor Star vs. All Asset Fund |
| All Asset vs. Siit Emerging Markets | All Asset vs. Ashmore Emerging Markets | All Asset vs. Growth Strategy Fund | All Asset vs. Ep Emerging Markets |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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