Correlation Between Astor Long/short and Corporate Bond
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Corporate Bond 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 Corporate Bond 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 Corporate Bond Portfolio, you can compare the effects of market volatilities on Astor Long/short and Corporate Bond 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 Corporate Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Corporate Bond.
Diversification Opportunities for Astor Long/short and Corporate Bond
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astor and Corporate is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Corporate Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Bond Portfolio 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 Corporate Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Bond Portfolio has no effect on the direction of Astor Long/short i.e., Astor Long/short and Corporate Bond go up and down completely randomly.
Pair Corralation between Astor Long/short and Corporate Bond
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 1.02 times more return on investment than Corporate Bond. However, Astor Long/short is 1.02 times more volatile than Corporate Bond Portfolio. It trades about 0.24 of its potential returns per unit of risk. Corporate Bond Portfolio is currently generating about -0.01 per unit of risk. If you would invest 1,357 in Astor Longshort Fund on September 3, 2024 and sell it today you would earn a total of 74.00 from holding Astor Longshort Fund or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Corporate Bond Portfolio
Performance |
| Timeline |
| Astor Long/short |
| Corporate Bond Portfolio |
Astor Long/short and Corporate Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Corporate Bond
The main advantage of trading using opposite Astor Long/short and Corporate Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Corporate Bond 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 Corporate Bond will offset losses from the drop in Corporate Bond's long position.| Astor Long/short vs. Fpa Queens Road | Astor Long/short vs. American Century Etf | Astor Long/short vs. Mutual Of America | Astor Long/short vs. Mid Cap Value Profund |
| Corporate Bond vs. Barings Active Short | Corporate Bond vs. Goldman Sachs Short | Corporate Bond vs. Astor Longshort Fund | Corporate Bond vs. Vanguard Institutional Short Term |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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