Correlation Between Astor Long/short and Dreyfus Select
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Dreyfus Select 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 Dreyfus Select 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 Select Managers, you can compare the effects of market volatilities on Astor Long/short and Dreyfus Select 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 Dreyfus Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Dreyfus Select.
Diversification Opportunities for Astor Long/short and Dreyfus Select
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astor and Dreyfus is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Dreyfus Select Managers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Select Managers 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 Dreyfus Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Select Managers has no effect on the direction of Astor Long/short i.e., Astor Long/short and Dreyfus Select go up and down completely randomly.
Pair Corralation between Astor Long/short and Dreyfus Select
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.52 times more return on investment than Dreyfus Select. However, Astor Longshort Fund is 1.94 times less risky than Dreyfus Select. It trades about 0.14 of its potential returns per unit of risk. Dreyfus Select Managers is currently generating about 0.05 per unit of risk. If you would invest 1,308 in Astor Longshort Fund on September 3, 2024 and sell it today you would earn a total of 123.00 from holding Astor Longshort Fund or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Dreyfus Select Managers
Performance |
| Timeline |
| Astor Long/short |
| Dreyfus Select Managers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astor Long/short and Dreyfus Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Dreyfus Select
The main advantage of trading using opposite Astor Long/short and Dreyfus Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Dreyfus Select 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 Select will offset losses from the drop in Dreyfus Select's long position.| Astor Long/short vs. Fpa Queens Road | Astor Long/short vs. American Century Etf | Astor Long/short vs. Mutual Of America | Astor Long/short vs. Mid Cap Value Profund |
| Dreyfus Select vs. Aqr Managed Futures | Dreyfus Select vs. Oklahoma College Savings | Dreyfus Select vs. T Rowe Price | Dreyfus Select vs. Ab Bond Inflation |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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