Correlation Between Astor Long/short and Eventide Core
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Eventide Core 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 Eventide Core 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 Eventide Core Bond, you can compare the effects of market volatilities on Astor Long/short and Eventide Core 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 Eventide Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Eventide Core.
Diversification Opportunities for Astor Long/short and Eventide Core
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astor and Eventide is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Eventide Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Core Bond 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 Eventide Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Core Bond has no effect on the direction of Astor Long/short i.e., Astor Long/short and Eventide Core go up and down completely randomly.
Pair Corralation between Astor Long/short and Eventide Core
Assuming the 90 days horizon Astor Long/short is expected to generate 1.39 times less return on investment than Eventide Core. In addition to that, Astor Long/short is 1.39 times more volatile than Eventide Core Bond. It trades about 0.09 of its total potential returns per unit of risk. Eventide Core Bond is currently generating about 0.18 per unit of volatility. If you would invest 812.00 in Eventide Core Bond on November 30, 2024 and sell it today you would earn a total of 18.00 from holding Eventide Core Bond or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Eventide Core Bond
Performance |
| Timeline |
| Astor Long/short |
| Eventide Core Bond |
Astor Long/short and Eventide Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Eventide Core
The main advantage of trading using opposite Astor Long/short and Eventide Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Eventide Core 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 Eventide Core will offset losses from the drop in Eventide Core's long position.| Astor Long/short vs. Tekla Healthcare Investors | Astor Long/short vs. Hartford Healthcare Hls | Astor Long/short vs. Deutsche Health And | Astor Long/short vs. Eaton Vance Worldwide |
| Eventide Core vs. City National Rochdale | Eventide Core vs. Virtus High Yield | Eventide Core vs. Siit High Yield | Eventide Core vs. Msift High Yield |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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