Correlation Between Astor Long/short and Eagle Mlp
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Eagle Mlp 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 Eagle Mlp 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 Eagle Mlp Strategy, you can compare the effects of market volatilities on Astor Long/short and Eagle Mlp 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 Eagle Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Eagle Mlp.
Diversification Opportunities for Astor Long/short and Eagle Mlp
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Astor and Eagle is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Eagle Mlp Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mlp Strategy 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 Eagle Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mlp Strategy has no effect on the direction of Astor Long/short i.e., Astor Long/short and Eagle Mlp go up and down completely randomly.
Pair Corralation between Astor Long/short and Eagle Mlp
Assuming the 90 days horizon Astor Long/short is expected to generate 3.57 times less return on investment than Eagle Mlp. But when comparing it to its historical volatility, Astor Longshort Fund is 2.19 times less risky than Eagle Mlp. It trades about 0.16 of its potential returns per unit of risk. Eagle Mlp Strategy is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 839.00 in Eagle Mlp Strategy on September 1, 2024 and sell it today you would earn a total of 279.00 from holding Eagle Mlp Strategy or generate 33.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Astor Longshort Fund vs. Eagle Mlp Strategy
Performance |
| Timeline |
| Astor Long/short |
| Eagle Mlp Strategy |
Astor Long/short and Eagle Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Eagle Mlp
The main advantage of trading using opposite Astor Long/short and Eagle Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Eagle Mlp 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 Eagle Mlp will offset losses from the drop in Eagle Mlp'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 |
| Eagle Mlp vs. Eagle Mlp Strategy | Eagle Mlp vs. Prudential Jennison International | Eagle Mlp vs. Fidelity New Markets | Eagle Mlp vs. Ohio Variable College |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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