Correlation Between Astor Long/short and Horizon Defined
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Horizon Defined 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 Horizon Defined 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 Horizon Defined Risk, you can compare the effects of market volatilities on Astor Long/short and Horizon Defined 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 Horizon Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Horizon Defined.
Diversification Opportunities for Astor Long/short and Horizon Defined
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Horizon is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Horizon Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Defined Risk 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 Horizon Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Defined Risk has no effect on the direction of Astor Long/short i.e., Astor Long/short and Horizon Defined go up and down completely randomly.
Pair Corralation between Astor Long/short and Horizon Defined
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 1.01 times more return on investment than Horizon Defined. However, Astor Long/short is 1.01 times more volatile than Horizon Defined Risk. It trades about 0.49 of its potential returns per unit of risk. Horizon Defined Risk is currently generating about 0.39 per unit of risk. If you would invest 1,380 in Astor Longshort Fund on September 3, 2024 and sell it today you would earn a total of 51.00 from holding Astor Longshort Fund or generate 3.7% 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. Horizon Defined Risk
Performance |
| Timeline |
| Astor Long/short |
| Horizon Defined Risk |
Astor Long/short and Horizon Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Horizon Defined
The main advantage of trading using opposite Astor Long/short and Horizon Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Horizon Defined 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 Horizon Defined will offset losses from the drop in Horizon Defined'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 |
| Horizon Defined vs. Maryland Short Term Tax Free | Horizon Defined vs. Federated Short Term Income | Horizon Defined vs. Astor Longshort Fund | Horizon Defined vs. Angel Oak Ultrashort |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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