Correlation Between Astor Long/short and Virtus Low
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Virtus Low 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 Virtus Low 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 Virtus Low Duration, you can compare the effects of market volatilities on Astor Long/short and Virtus Low 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 Virtus Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Virtus Low.
Diversification Opportunities for Astor Long/short and Virtus Low
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Astor and Virtus is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Virtus Low Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Low Duration 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 Virtus Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Low Duration has no effect on the direction of Astor Long/short i.e., Astor Long/short and Virtus Low go up and down completely randomly.
Pair Corralation between Astor Long/short and Virtus Low
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 3.18 times more return on investment than Virtus Low. However, Astor Long/short is 3.18 times more volatile than Virtus Low Duration. It trades about 0.24 of its potential returns per unit of risk. Virtus Low Duration is currently generating about 0.1 per unit of risk. If you would invest 1,357 in Astor Longshort Fund on September 2, 2024 and sell it today you would earn a total of 74.00 from holding Astor Longshort Fund or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Virtus Low Duration
Performance |
| Timeline |
| Astor Long/short |
| Virtus Low Duration |
Astor Long/short and Virtus Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Virtus Low
The main advantage of trading using opposite Astor Long/short and Virtus Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Virtus Low 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 Virtus Low will offset losses from the drop in Virtus Low's long position.| Astor Long/short vs. Fidelity Series Government | Astor Long/short vs. Government Securities Fund | Astor Long/short vs. Dws Government Money | Astor Long/short vs. Dreyfus Government Cash |
| Virtus Low vs. Virtus Multi Strategy Target | Virtus Low vs. Virtus Multi Sector Short | Virtus Low vs. Ridgeworth Seix High | Virtus Low vs. Ridgeworth Innovative Growth |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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