Correlation Between Astor Long/short and Nicholas
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Nicholas 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 Nicholas 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 Nicholas Ltd Edition, you can compare the effects of market volatilities on Astor Long/short and Nicholas 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 Nicholas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Nicholas.
Diversification Opportunities for Astor Long/short and Nicholas
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Nicholas is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Nicholas Ltd Edition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicholas Edition 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 Nicholas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicholas Edition has no effect on the direction of Astor Long/short i.e., Astor Long/short and Nicholas go up and down completely randomly.
Pair Corralation between Astor Long/short and Nicholas
Assuming the 90 days horizon Astor Long/short is expected to generate 2.05 times less return on investment than Nicholas. But when comparing it to its historical volatility, Astor Longshort Fund is 2.6 times less risky than Nicholas. It trades about 0.16 of its potential returns per unit of risk. Nicholas Ltd Edition is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,502 in Nicholas Ltd Edition on August 29, 2024 and sell it today you would earn a total of 436.00 from holding Nicholas Ltd Edition or generate 17.43% 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. Nicholas Ltd Edition
Performance |
| Timeline |
| Astor Long/short |
| Nicholas Edition |
Astor Long/short and Nicholas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Nicholas
The main advantage of trading using opposite Astor Long/short and Nicholas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Nicholas 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 Nicholas will offset losses from the drop in Nicholas' long position.| Astor Long/short vs. Ambrus Core Bond | Astor Long/short vs. Ms Global Fixed | Astor Long/short vs. T Rowe Price | Astor Long/short vs. Multisector Bond Sma |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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