Correlation Between Astor Long/short and Columbia Disciplined
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Columbia Disciplined 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 Columbia Disciplined 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 Columbia Disciplined Value, you can compare the effects of market volatilities on Astor Long/short and Columbia Disciplined 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 Columbia Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Columbia Disciplined.
Diversification Opportunities for Astor Long/short and Columbia Disciplined
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Columbia is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Columbia Disciplined Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Disciplined 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 Columbia Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Disciplined has no effect on the direction of Astor Long/short i.e., Astor Long/short and Columbia Disciplined go up and down completely randomly.
Pair Corralation between Astor Long/short and Columbia Disciplined
Assuming the 90 days horizon Astor Long/short is expected to generate 1.72 times less return on investment than Columbia Disciplined. But when comparing it to its historical volatility, Astor Longshort Fund is 2.02 times less risky than Columbia Disciplined. It trades about 0.49 of its potential returns per unit of risk. Columbia Disciplined Value is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 960.00 in Columbia Disciplined Value on September 1, 2024 and sell it today you would earn a total of 64.00 from holding Columbia Disciplined Value or generate 6.67% 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. Columbia Disciplined Value
Performance |
| Timeline |
| Astor Long/short |
| Columbia Disciplined |
Astor Long/short and Columbia Disciplined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Columbia Disciplined
The main advantage of trading using opposite Astor Long/short and Columbia Disciplined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Columbia Disciplined 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 Columbia Disciplined will offset losses from the drop in Columbia Disciplined's long position.| Astor Long/short vs. Fidelity Real Estate | Astor Long/short vs. Prudential Real Estate | Astor Long/short vs. Deutsche Real Estate | Astor Long/short vs. Virtus Real Estate |
| Columbia Disciplined vs. Columbia Select Large Cap | Columbia Disciplined vs. Columbia Select Large Cap | Columbia Disciplined vs. Federated Mdt Large | Columbia Disciplined vs. Calvert Large Cap |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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