Correlation Between Astor Long/short and Invesco Emerging
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Invesco Emerging 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 Invesco Emerging 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 Invesco Emerging Markets, you can compare the effects of market volatilities on Astor Long/short and Invesco Emerging 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 Invesco Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Invesco Emerging.
Diversification Opportunities for Astor Long/short and Invesco Emerging
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astor and Invesco is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Invesco Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Emerging Markets 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 Invesco Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Emerging Markets has no effect on the direction of Astor Long/short i.e., Astor Long/short and Invesco Emerging go up and down completely randomly.
Pair Corralation between Astor Long/short and Invesco Emerging
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.92 times more return on investment than Invesco Emerging. However, Astor Longshort Fund is 1.08 times less risky than Invesco Emerging. It trades about 0.24 of its potential returns per unit of risk. Invesco Emerging Markets is currently generating about -0.09 per unit of risk. If you would invest 1,392 in Astor Longshort Fund on August 27, 2024 and sell it today you would earn a total of 31.00 from holding Astor Longshort Fund or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Invesco Emerging Markets
Performance |
| Timeline |
| Astor Long/short |
| Invesco Emerging Markets |
Astor Long/short and Invesco Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Invesco Emerging
The main advantage of trading using opposite Astor Long/short and Invesco Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Invesco Emerging 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 Invesco Emerging will offset losses from the drop in Invesco Emerging's long position.| Astor Long/short vs. Rbc Short Duration | Astor Long/short vs. Angel Oak Ultrashort | Astor Long/short vs. Quantitative Longshort Equity | Astor Long/short vs. Old Westbury Short Term |
| Invesco Emerging vs. Astor Longshort Fund | Invesco Emerging vs. Ultra Short Fixed Income | Invesco Emerging vs. Jhancock Short Duration | Invesco Emerging vs. Quantitative Longshort Equity |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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