Correlation Between Astor Longshort and Mfs Blended
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Mfs Blended 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 Mfs Blended 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 Mfs Blended Research, you can compare the effects of market volatilities on Astor Longshort and Mfs Blended 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 Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Mfs Blended.
Diversification Opportunities for Astor Longshort and Mfs Blended
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astor and Mfs is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research 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 Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of Astor Longshort i.e., Astor Longshort and Mfs Blended go up and down completely randomly.
Pair Corralation between Astor Longshort and Mfs Blended
Assuming the 90 days horizon Astor Longshort is expected to generate 2.05 times less return on investment than Mfs Blended. But when comparing it to its historical volatility, Astor Longshort Fund is 2.2 times less risky than Mfs Blended. It trades about 0.17 of its potential returns per unit of risk. Mfs Blended Research is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,387 in Mfs Blended Research on September 14, 2024 and sell it today you would earn a total of 28.00 from holding Mfs Blended Research or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Mfs Blended Research
Performance |
| Timeline |
| Astor Longshort |
| Mfs Blended Research |
Astor Longshort and Mfs Blended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Mfs Blended
The main advantage of trading using opposite Astor Longshort and Mfs Blended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Mfs Blended 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 Mfs Blended will offset losses from the drop in Mfs Blended's 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 |
| Mfs Blended vs. Lord Abbett Short | Mfs Blended vs. Quantitative Longshort Equity | Mfs Blended vs. Angel Oak Ultrashort | Mfs Blended vs. Astor Longshort Fund |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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