Correlation Between Astor Long/short and Nuance Mid
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Nuance Mid 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 Nuance Mid 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 Nuance Mid Cap, you can compare the effects of market volatilities on Astor Long/short and Nuance Mid 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 Nuance Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Nuance Mid.
Diversification Opportunities for Astor Long/short and Nuance Mid
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Nuance is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Nuance Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuance Mid Cap 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 Nuance Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuance Mid Cap has no effect on the direction of Astor Long/short i.e., Astor Long/short and Nuance Mid go up and down completely randomly.
Pair Corralation between Astor Long/short and Nuance Mid
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.54 times more return on investment than Nuance Mid. However, Astor Longshort Fund is 1.84 times less risky than Nuance Mid. It trades about -0.06 of its potential returns per unit of risk. Nuance Mid Cap is currently generating about -0.18 per unit of risk. If you would invest 1,299 in Astor Longshort Fund on November 28, 2024 and sell it today you would lose (6.00) from holding Astor Longshort Fund or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Nuance Mid Cap
Performance |
| Timeline |
| Astor Long/short |
| Nuance Mid Cap |
Astor Long/short and Nuance Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Nuance Mid
The main advantage of trading using opposite Astor Long/short and Nuance Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Nuance Mid 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 Nuance Mid will offset losses from the drop in Nuance Mid's long position.The idea behind Astor Longshort Fund and Nuance Mid Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Nuance Mid vs. Goldman Sachs Financial | Nuance Mid vs. Financials Ultrasector Profund | Nuance Mid vs. John Hancock Financial | Nuance Mid vs. 1919 Financial Services |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |