Correlation Between Astor Longshort and Aquila Tax
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Aquila Tax 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 Longshort and Aquila Tax 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 Aquila Tax Free Trust, you can compare the effects of market volatilities on Astor Longshort and Aquila Tax 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 Longshort with a short position of Aquila Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Aquila Tax.
Diversification Opportunities for Astor Longshort and Aquila Tax
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Astor and Aquila is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Aquila Tax Free Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquila Tax Free and Astor Longshort 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 Aquila Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquila Tax Free has no effect on the direction of Astor Longshort i.e., Astor Longshort and Aquila Tax go up and down completely randomly.
Pair Corralation between Astor Longshort and Aquila Tax
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 2.0 times more return on investment than Aquila Tax. However, Astor Longshort is 2.0 times more volatile than Aquila Tax Free Trust. It trades about 0.15 of its potential returns per unit of risk. Aquila Tax Free Trust is currently generating about 0.1 per unit of risk. If you would invest 1,195 in Astor Longshort Fund on September 12, 2024 and sell it today you would earn a total of 232.00 from holding Astor Longshort Fund or generate 19.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Aquila Tax Free Trust
Performance |
| Timeline |
| Astor Longshort |
| Aquila Tax Free |
Astor Longshort and Aquila Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Aquila Tax
The main advantage of trading using opposite Astor Longshort and Aquila Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Aquila Tax 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 Aquila Tax will offset losses from the drop in Aquila Tax's long position.| Astor Longshort vs. SCOR PK | Astor Longshort vs. Morningstar Unconstrained Allocation | Astor Longshort vs. Via Renewables | Astor Longshort vs. Bondbloxx ETF Trust |
| Aquila Tax vs. Virtus Multi Sector Short | Aquila Tax vs. Astor Longshort Fund | Aquila Tax vs. Old Westbury Short Term | Aquila Tax vs. Cmg Ultra Short |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |