Correlation Between Astor Long/short and Retirement Living
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Retirement Living 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 Retirement Living 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 Retirement Living Through, you can compare the effects of market volatilities on Astor Long/short and Retirement Living 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 Retirement Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Retirement Living.
Diversification Opportunities for Astor Long/short and Retirement Living
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Retirement is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Retirement Living Through in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retirement Living Through 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 Retirement Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retirement Living Through has no effect on the direction of Astor Long/short i.e., Astor Long/short and Retirement Living go up and down completely randomly.
Pair Corralation between Astor Long/short and Retirement Living
Assuming the 90 days horizon Astor Long/short is expected to generate 1.21 times less return on investment than Retirement Living. But when comparing it to its historical volatility, Astor Longshort Fund is 1.82 times less risky than Retirement Living. It trades about 0.24 of its potential returns per unit of risk. Retirement Living Through is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,454 in Retirement Living Through on September 2, 2024 and sell it today you would earn a total of 95.00 from holding Retirement Living Through or generate 6.53% 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. Retirement Living Through
Performance |
| Timeline |
| Astor Long/short |
| Retirement Living Through |
Astor Long/short and Retirement Living Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Retirement Living
The main advantage of trading using opposite Astor Long/short and Retirement Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Retirement Living 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 Retirement Living will offset losses from the drop in Retirement Living'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 |
| Retirement Living vs. Regional Bank Fund | Retirement Living vs. Regional Bank Fund | Retirement Living vs. Multimanager Lifestyle Moderate | Retirement Living vs. Multimanager Lifestyle Balanced |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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