Correlation Between Astor Longshort and Global Equity
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Global Equity 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 Global Equity 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 Global Equity Portfolio, you can compare the effects of market volatilities on Astor Longshort and Global Equity 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 Global Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Global Equity.
Diversification Opportunities for Astor Longshort and Global Equity
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Global is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Global Equity Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Equity Portfolio 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 Global Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Equity Portfolio has no effect on the direction of Astor Longshort i.e., Astor Longshort and Global Equity go up and down completely randomly.
Pair Corralation between Astor Longshort and Global Equity
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.59 times more return on investment than Global Equity. However, Astor Longshort Fund is 1.7 times less risky than Global Equity. It trades about 0.17 of its potential returns per unit of risk. Global Equity Portfolio is currently generating about 0.08 per unit of risk. If you would invest 1,413 in Astor Longshort Fund on September 14, 2024 and sell it today you would earn a total of 14.00 from holding Astor Longshort Fund or generate 0.99% 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. Global Equity Portfolio
Performance |
| Timeline |
| Astor Longshort |
| Global Equity Portfolio |
Astor Longshort and Global Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Global Equity
The main advantage of trading using opposite Astor Longshort and Global Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Global Equity 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 Global Equity will offset losses from the drop in Global Equity'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 |
| Global Equity vs. Astor Longshort Fund | Global Equity vs. Barings Active Short | Global Equity vs. Cmg Ultra Short | Global Equity vs. Angel Oak Ultrashort |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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