Correlation Between Astor Long/short and Harbor Strategic
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Harbor Strategic 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 Harbor Strategic 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 Harbor Strategic Growth, you can compare the effects of market volatilities on Astor Long/short and Harbor Strategic 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 Harbor Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Harbor Strategic.
Diversification Opportunities for Astor Long/short and Harbor Strategic
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Astor and Harbor is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Harbor Strategic Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Strategic 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 Harbor Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Strategic Growth has no effect on the direction of Astor Long/short i.e., Astor Long/short and Harbor Strategic go up and down completely randomly.
Pair Corralation between Astor Long/short and Harbor Strategic
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.29 times more return on investment than Harbor Strategic. However, Astor Longshort Fund is 3.45 times less risky than Harbor Strategic. It trades about 0.06 of its potential returns per unit of risk. Harbor Strategic Growth is currently generating about -0.01 per unit of risk. If you would invest 1,135 in Astor Longshort Fund on November 27, 2024 and sell it today you would earn a total of 160.00 from holding Astor Longshort Fund or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Harbor Strategic Growth
Performance |
| Timeline |
| Astor Long/short |
| Harbor Strategic Growth |
Astor Long/short and Harbor Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Harbor Strategic
The main advantage of trading using opposite Astor Long/short and Harbor Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Harbor Strategic 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 Harbor Strategic will offset losses from the drop in Harbor Strategic's long position.| Astor Long/short vs. Virtus Multi Sector Short | Astor Long/short vs. Calvert Short Duration | Astor Long/short vs. Cmg Ultra Short | Astor Long/short vs. Prudential 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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