Correlation Between Astor Long/short and Horizon Funds
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Horizon Funds 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 Funds 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 Funds , you can compare the effects of market volatilities on Astor Long/short and Horizon Funds 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 Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Horizon Funds.
Diversification Opportunities for Astor Long/short and Horizon Funds
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Astor and Horizon is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Horizon Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Funds 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 Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Funds has no effect on the direction of Astor Long/short i.e., Astor Long/short and Horizon Funds go up and down completely randomly.
Pair Corralation between Astor Long/short and Horizon Funds
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 1.12 times more return on investment than Horizon Funds. However, Astor Long/short is 1.12 times more volatile than Horizon Funds . It trades about 0.11 of its potential returns per unit of risk. Horizon Funds is currently generating about 0.04 per unit of risk. If you would invest 1,187 in Astor Longshort Fund on September 2, 2024 and sell it today you would earn a total of 244.00 from holding Astor Longshort Fund or generate 20.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 88.51% |
| Values | Daily Returns |
Astor Longshort Fund vs. Horizon Funds
Performance |
| Timeline |
| Astor Long/short |
| Horizon Funds |
Astor Long/short and Horizon Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Horizon Funds
The main advantage of trading using opposite Astor Long/short and Horizon Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Horizon Funds 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 Funds will offset losses from the drop in Horizon Funds' 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 |
| Horizon Funds vs. Horizon Active Risk | Horizon Funds vs. Horizon Active Risk | Horizon Funds vs. Horizon Active Asset | Horizon Funds vs. Horizon Active Dividend |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |