Correlation Between Astor Long/short and Frontier Mfg
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Frontier Mfg 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 Frontier Mfg 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 Frontier Mfg Global, you can compare the effects of market volatilities on Astor Long/short and Frontier Mfg 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 Frontier Mfg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Frontier Mfg.
Diversification Opportunities for Astor Long/short and Frontier Mfg
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astor and Frontier is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Frontier Mfg Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Mfg Global 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 Frontier Mfg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Mfg Global has no effect on the direction of Astor Long/short i.e., Astor Long/short and Frontier Mfg go up and down completely randomly.
Pair Corralation between Astor Long/short and Frontier Mfg
Assuming the 90 days horizon Astor Long/short is expected to generate 2.23 times less return on investment than Frontier Mfg. But when comparing it to its historical volatility, Astor Longshort Fund is 1.93 times less risky than Frontier Mfg. It trades about 0.11 of its potential returns per unit of risk. Frontier Mfg Global is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,037 in Frontier Mfg Global on September 3, 2024 and sell it today you would earn a total of 522.00 from holding Frontier Mfg Global or generate 50.34% 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. Frontier Mfg Global
Performance |
| Timeline |
| Astor Long/short |
| Frontier Mfg Global |
Astor Long/short and Frontier Mfg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Frontier Mfg
The main advantage of trading using opposite Astor Long/short and Frontier Mfg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Frontier Mfg 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 Frontier Mfg will offset losses from the drop in Frontier Mfg's long position.| Astor Long/short vs. Fpa Queens Road | Astor Long/short vs. American Century Etf | Astor Long/short vs. Mutual Of America | Astor Long/short vs. Mid Cap Value Profund |
| Frontier Mfg vs. Astor Longshort Fund | Frontier Mfg vs. Barings Active Short | Frontier Mfg vs. Rbc Short Duration | Frontier Mfg vs. Calvert Short Duration |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |