Correlation Between Astor Longshort and Boston Partners
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Boston Partners 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 Boston Partners 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 Boston Partners Longshort, you can compare the effects of market volatilities on Astor Longshort and Boston Partners 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 Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Boston Partners.
Diversification Opportunities for Astor Longshort and Boston Partners
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Boston is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Boston Partners Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Longshort 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 Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Longshort has no effect on the direction of Astor Longshort i.e., Astor Longshort and Boston Partners go up and down completely randomly.
Pair Corralation between Astor Longshort and Boston Partners
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.57 times more return on investment than Boston Partners. However, Astor Longshort Fund is 1.76 times less risky than Boston Partners. It trades about 0.13 of its potential returns per unit of risk. Boston Partners Longshort is currently generating about 0.04 per unit of risk. If you would invest 1,146 in Astor Longshort Fund on September 14, 2024 and sell it today you would earn a total of 281.00 from holding Astor Longshort Fund or generate 24.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Boston Partners Longshort
Performance |
| Timeline |
| Astor Longshort |
| Boston Partners Longshort |
Astor Longshort and Boston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Boston Partners
The main advantage of trading using opposite Astor Longshort and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' long position.| Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Longshort Fund |
| Boston Partners vs. Boston Partners Longshort | Boston Partners vs. Blackrock Midcap Index | Boston Partners vs. The Arbitrage Fund | Boston Partners vs. Calamos Market Neutral |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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