Correlation Between Astor Long/short and Nuveen Small
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Nuveen Small 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 Nuveen Small 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 Small Cap, you can compare the effects of market volatilities on Astor Long/short and Nuveen Small 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 Nuveen Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Nuveen Small.
Diversification Opportunities for Astor Long/short and Nuveen Small
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Nuveen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Nuveen Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Small Cap 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 Nuveen Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Small Cap has no effect on the direction of Astor Long/short i.e., Astor Long/short and Nuveen Small go up and down completely randomly.
Pair Corralation between Astor Long/short and Nuveen Small
Assuming the 90 days horizon Astor Long/short is expected to generate 2.04 times less return on investment than Nuveen Small. But when comparing it to its historical volatility, Astor Longshort Fund is 3.4 times less risky than Nuveen Small. It trades about 0.11 of its potential returns per unit of risk. Nuveen Small Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,019 in Nuveen Small Cap on September 3, 2024 and sell it today you would earn a total of 841.00 from holding Nuveen Small Cap or generate 41.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Nuveen Small Cap
Performance |
| Timeline |
| Astor Long/short |
| Nuveen Small Cap |
Astor Long/short and Nuveen Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Nuveen Small
The main advantage of trading using opposite Astor Long/short and Nuveen Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Nuveen Small 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 Small will offset losses from the drop in Nuveen Small'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 |
| Nuveen Small vs. Maryland Short Term Tax Free | Nuveen Small vs. Locorr Longshort Modities | Nuveen Small vs. Astor Longshort Fund | Nuveen Small vs. Jhancock 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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