Correlation Between Astor Longshort and Nuveen Arizona
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Nuveen Arizona 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 Nuveen Arizona 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 Nuveen Arizona Municipal, you can compare the effects of market volatilities on Astor Longshort and Nuveen Arizona 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 Nuveen Arizona. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Nuveen Arizona.
Diversification Opportunities for Astor Longshort and Nuveen Arizona
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Astor and Nuveen is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Nuveen Arizona Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Arizona Municipal 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 Nuveen Arizona. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Arizona Municipal has no effect on the direction of Astor Longshort i.e., Astor Longshort and Nuveen Arizona go up and down completely randomly.
Pair Corralation between Astor Longshort and Nuveen Arizona
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 2.06 times more return on investment than Nuveen Arizona. However, Astor Longshort is 2.06 times more volatile than Nuveen Arizona Municipal. It trades about 0.13 of its potential returns per unit of risk. Nuveen Arizona Municipal is currently generating about 0.1 per unit of risk. If you would invest 1,333 in Astor Longshort Fund on September 13, 2024 and sell it today you would earn a total of 90.00 from holding Astor Longshort Fund or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Nuveen Arizona Municipal
Performance |
| Timeline |
| Astor Longshort |
| Nuveen Arizona Municipal |
Astor Longshort and Nuveen Arizona Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Nuveen Arizona
The main advantage of trading using opposite Astor Longshort and Nuveen Arizona positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Nuveen Arizona 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 Nuveen Arizona will offset losses from the drop in Nuveen Arizona's long position.| Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Longshort Fund |
| Nuveen Arizona vs. Kinetics Market Opportunities | Nuveen Arizona vs. Rbc Emerging Markets | Nuveen Arizona vs. Calvert Developed Market | Nuveen Arizona vs. Transamerica Emerging Markets |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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