Correlation Between Astor Long/short and Federated High
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Federated High 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 Federated High 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 Federated High Income, you can compare the effects of market volatilities on Astor Long/short and Federated High 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 Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Federated High.
Diversification Opportunities for Astor Long/short and Federated High
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astor and Federated is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Federated High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Income 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 Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Income has no effect on the direction of Astor Long/short i.e., Astor Long/short and Federated High go up and down completely randomly.
Pair Corralation between Astor Long/short and Federated High
If you would invest 661.00 in Federated High Income on October 7, 2024 and sell it today you would earn a total of 0.00 from holding Federated High Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Federated High Income
Performance |
| Timeline |
| Astor Long/short |
| Federated High Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astor Long/short and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Federated High
The main advantage of trading using opposite Astor Long/short and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Federated High 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 Federated High will offset losses from the drop in Federated High's long position.| Astor Long/short vs. Ab Small Cap | Astor Long/short vs. Vy Columbia Small | Astor Long/short vs. Sp Smallcap 600 | Astor Long/short vs. Glg Intl Small |
| Federated High vs. Rmb Mendon Financial | Federated High vs. 1919 Financial Services | Federated High vs. Mesirow Financial Small | Federated High vs. Blackrock Financial Institutions |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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