Correlation Between Astor Long/short and Federated
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Federated 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 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 U S, you can compare the effects of market volatilities on Astor Long/short and Federated 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Federated.
Diversification Opportunities for Astor Long/short and Federated
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astor and Federated is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Federated U S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated U S 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated U S has no effect on the direction of Astor Long/short i.e., Astor Long/short and Federated go up and down completely randomly.
Pair Corralation between Astor Long/short and Federated
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 3.14 times more return on investment than Federated. However, Astor Long/short is 3.14 times more volatile than Federated U S. It trades about 0.16 of its potential returns per unit of risk. Federated U S is currently generating about 0.15 per unit of risk. If you would invest 1,318 in Astor Longshort Fund on September 1, 2024 and sell it today you would earn a total of 110.00 from holding Astor Longshort Fund or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Federated U S
Performance |
| Timeline |
| Astor Long/short |
| Federated U S |
Astor Long/short and Federated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Federated
The main advantage of trading using opposite Astor Long/short and Federated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Federated 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 will offset losses from the drop in Federated's long position.| Astor Long/short vs. Fidelity Real Estate | Astor Long/short vs. Prudential Real Estate | Astor Long/short vs. Deutsche Real Estate | Astor Long/short vs. Virtus Real Estate |
| Federated vs. Federated Emerging Market | Federated vs. Federated Mdt All | Federated vs. Federated Mdt Balanced | Federated vs. Federated Global Allocation |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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