Correlation Between Astor Long/short and Nationwide Growth
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Nationwide Growth 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 Nationwide Growth 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 Nationwide Growth Fund, you can compare the effects of market volatilities on Astor Long/short and Nationwide Growth 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 Nationwide Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Nationwide Growth.
Diversification Opportunities for Astor Long/short and Nationwide Growth
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Astor and Nationwide is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Nationwide Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Growth 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 Nationwide Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Growth has no effect on the direction of Astor Long/short i.e., Astor Long/short and Nationwide Growth go up and down completely randomly.
Pair Corralation between Astor Long/short and Nationwide Growth
Assuming the 90 days horizon Astor Long/short is expected to generate 3.51 times less return on investment than Nationwide Growth. But when comparing it to its historical volatility, Astor Longshort Fund is 1.68 times less risky than Nationwide Growth. It trades about 0.02 of its potential returns per unit of risk. Nationwide Growth Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,026 in Nationwide Growth Fund on January 16, 2025 and sell it today you would earn a total of 248.00 from holding Nationwide Growth Fund or generate 24.17% 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. Nationwide Growth Fund
Performance |
| Timeline |
| Astor Long/short |
| Nationwide Growth |
Astor Long/short and Nationwide Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Nationwide Growth
The main advantage of trading using opposite Astor Long/short and Nationwide Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Nationwide Growth 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 Nationwide Growth will offset losses from the drop in Nationwide Growth's long position.| Astor Long/short vs. All Asset Fund | Astor Long/short vs. Pimco All Asset | Astor Long/short vs. All Asset Fund | Astor Long/short vs. Pimco All Asset |
| Nationwide Growth vs. Vanguard Ultra Short Term Bond | Nationwide Growth vs. Shelton International Select | Nationwide Growth vs. T Rowe Price | Nationwide Growth vs. Catalyst Enhanced Income |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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