Correlation Between Astor Long/short and Mfs Technology
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Mfs Technology 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 Mfs Technology 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 Technology Fund, you can compare the effects of market volatilities on Astor Long/short and Mfs Technology 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 Mfs Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Mfs Technology.
Diversification Opportunities for Astor Long/short and Mfs Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Mfs is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Mfs Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Technology 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 Mfs Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Technology has no effect on the direction of Astor Long/short i.e., Astor Long/short and Mfs Technology go up and down completely randomly.
Pair Corralation between Astor Long/short and Mfs Technology
Assuming the 90 days horizon Astor Long/short is expected to generate 2.53 times less return on investment than Mfs Technology. But when comparing it to its historical volatility, Astor Longshort Fund is 3.02 times less risky than Mfs Technology. It trades about 0.17 of its potential returns per unit of risk. Mfs Technology Fund is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,961 in Mfs Technology Fund on August 24, 2024 and sell it today you would earn a total of 195.00 from holding Mfs Technology Fund or generate 3.93% 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. Mfs Technology Fund
Performance |
| Timeline |
| Astor Long/short |
| Mfs Technology |
Astor Long/short and Mfs Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Mfs Technology
The main advantage of trading using opposite Astor Long/short and Mfs Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Mfs Technology 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 Technology will offset losses from the drop in Mfs Technology's long position.| Astor Long/short vs. Smead Value Fund | Astor Long/short vs. Tax Managed Large Cap | Astor Long/short vs. Aqr Large Cap | Astor Long/short vs. Falcon Focus Scv |
| Mfs Technology vs. Angel Oak Ultrashort | Mfs Technology vs. Barings Active Short | Mfs Technology vs. Astor Longshort Fund | Mfs Technology vs. Siit Ultra 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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