Correlation Between Astor Longshort and Mfs Value
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Mfs Value 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 Mfs Value 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 Mfs Value Fund, you can compare the effects of market volatilities on Astor Longshort and Mfs Value 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 Mfs Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Mfs Value.
Diversification Opportunities for Astor Longshort and Mfs Value
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Astor and Mfs is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Mfs Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Value Fund 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 Mfs Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Value Fund has no effect on the direction of Astor Longshort i.e., Astor Longshort and Mfs Value go up and down completely randomly.
Pair Corralation between Astor Longshort and Mfs Value
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.53 times more return on investment than Mfs Value. However, Astor Longshort Fund is 1.89 times less risky than Mfs Value. It trades about 0.23 of its potential returns per unit of risk. Mfs Value Fund is currently generating about 0.02 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 | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Astor Longshort Fund vs. Mfs Value Fund
Performance |
| Timeline |
| Astor Longshort |
| Mfs Value Fund |
Astor Longshort and Mfs Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Mfs Value
The main advantage of trading using opposite Astor Longshort and Mfs Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Mfs Value 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 Mfs Value will offset losses from the drop in Mfs Value's long position.| Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Longshort Fund |
| Mfs Value vs. Delaware Investments Ultrashort | Mfs Value vs. Aqr Long Short Equity | Mfs Value vs. Astor Longshort Fund | Mfs Value vs. Virtus Multi Sector Short |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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