Correlation Between Astor Longshort and Dreyfus Short
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Dreyfus Short 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 Dreyfus Short 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 Dreyfus Short Intermediate, you can compare the effects of market volatilities on Astor Longshort and Dreyfus Short 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 Dreyfus Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Dreyfus Short.
Diversification Opportunities for Astor Longshort and Dreyfus Short
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Astor and Dreyfus is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Dreyfus Short Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Short Interm 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 Dreyfus Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Short Interm has no effect on the direction of Astor Longshort i.e., Astor Longshort and Dreyfus Short go up and down completely randomly.
Pair Corralation between Astor Longshort and Dreyfus Short
If you would invest 1,405 in Astor Longshort Fund on September 19, 2024 and sell it today you would earn a total of 17.00 from holding Astor Longshort Fund or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Dreyfus Short Intermediate
Performance |
| Timeline |
| Astor Longshort |
| Dreyfus Short Interm |
Astor Longshort and Dreyfus Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Dreyfus Short
The main advantage of trading using opposite Astor Longshort and Dreyfus Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Dreyfus Short 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 Dreyfus Short will offset losses from the drop in Dreyfus Short's long position.| Astor Longshort vs. Western Asset Inflation | Astor Longshort vs. Goldman Sachs Inflation | Astor Longshort vs. Guidepath Managed Futures | Astor Longshort vs. Lord Abbett Inflation |
| Dreyfus Short vs. Dreyfus High Yield | Dreyfus Short vs. Dreyfusthe Boston Pany | Dreyfus Short vs. Dreyfus International Bond | Dreyfus Short vs. Dreyfus International Bond |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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