Correlation Between Astor Long/short and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Angel Oak 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 Long/short and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Angel Oak Ultrashort, you can compare the effects of market volatilities on Astor Long/short and Angel Oak 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 Long/short with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Angel Oak.
Diversification Opportunities for Astor Long/short and Angel Oak
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astor and Angel is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Angel Oak Ultrashort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Ultrashort and Astor Long/short 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 Longshort Fund are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Ultrashort has no effect on the direction of Astor Long/short i.e., Astor Long/short and Angel Oak go up and down completely randomly.
Pair Corralation between Astor Long/short and Angel Oak
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 3.35 times more return on investment than Angel Oak. However, Astor Long/short is 3.35 times more volatile than Angel Oak Ultrashort. It trades about 0.11 of its potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.23 per unit of risk. If you would invest 1,184 in Astor Longshort Fund on August 30, 2024 and sell it today you would earn a total of 245.00 from holding Astor Longshort Fund or generate 20.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Astor Longshort Fund vs. Angel Oak Ultrashort
Performance |
| Timeline |
| Astor Long/short |
| Angel Oak Ultrashort |
Astor Long/short and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Angel Oak
The main advantage of trading using opposite Astor Long/short and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Astor Long/short vs. Astor Star Fund | Astor Long/short vs. Astor Star Fund | Astor Long/short vs. Astor Longshort Fund | Astor Long/short vs. Astor Longshort Fund |
| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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