Correlation Between Astor Longshort and Janus Global
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Janus Global 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 Longshort and Janus Global 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 Janus Global Technology, you can compare the effects of market volatilities on Astor Longshort and Janus Global 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 Longshort with a short position of Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Janus Global.
Diversification Opportunities for Astor Longshort and Janus Global
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astor and Janus is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Janus Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Technology and Astor Longshort 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 Janus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Technology has no effect on the direction of Astor Longshort i.e., Astor Longshort and Janus Global go up and down completely randomly.
Pair Corralation between Astor Longshort and Janus Global
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.17 times more return on investment than Janus Global. However, Astor Longshort Fund is 5.79 times less risky than Janus Global. It trades about 0.23 of its potential returns per unit of risk. Janus Global Technology is currently generating about -0.03 per unit of risk. If you would invest 1,362 in Astor Longshort Fund on September 12, 2024 and sell it today you would earn a total of 65.00 from holding Astor Longshort Fund or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Astor Longshort Fund vs. Janus Global Technology
Performance |
| Timeline |
| Astor Longshort |
| Janus Global Technology |
Astor Longshort and Janus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Janus Global
The main advantage of trading using opposite Astor Longshort and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Janus Global 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 Janus Global will offset losses from the drop in Janus Global's long position.| Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Macro Alternative |
| Janus Global vs. Wealthbuilder Conservative Allocation | Janus Global vs. Allianzgi Diversified Income | Janus Global vs. Western Asset Diversified | Janus Global vs. Global Diversified 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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