Correlation Between Astor Long/short and Ab Sustainable
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Ab Sustainable 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 Ab Sustainable 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 Ab Sustainable Global, you can compare the effects of market volatilities on Astor Long/short and Ab Sustainable 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 Ab Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Ab Sustainable.
Diversification Opportunities for Astor Long/short and Ab Sustainable
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Astor and ATECX is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Ab Sustainable Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Sustainable Global 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 Ab Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Sustainable Global has no effect on the direction of Astor Long/short i.e., Astor Long/short and Ab Sustainable go up and down completely randomly.
Pair Corralation between Astor Long/short and Ab Sustainable
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.54 times more return on investment than Ab Sustainable. However, Astor Longshort Fund is 1.86 times less risky than Ab Sustainable. It trades about 0.49 of its potential returns per unit of risk. Ab Sustainable Global is currently generating about 0.11 per unit of risk. If you would invest 1,380 in Astor Longshort Fund on September 4, 2024 and sell it today you would earn a total of 51.00 from holding Astor Longshort Fund or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Astor Longshort Fund vs. Ab Sustainable Global
Performance |
| Timeline |
| Astor Long/short |
| Ab Sustainable Global |
Astor Long/short and Ab Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Ab Sustainable
The main advantage of trading using opposite Astor Long/short and Ab Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Ab Sustainable 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 Ab Sustainable will offset losses from the drop in Ab Sustainable's long position.| Astor Long/short vs. Virtus Seix Government | Astor Long/short vs. Dunham Porategovernment Bond | Astor Long/short vs. Dreyfus Government Cash | Astor Long/short vs. Dws Government Money |
| Ab Sustainable vs. Ab Global E | Ab Sustainable vs. Ab Global E | Ab Sustainable vs. Ab Global E | Ab Sustainable vs. Ab Minnesota Portfolio |
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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