Correlation Between Astor Long/short and Aew Real
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Aew Real 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 Aew Real 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 Aew Real Estate, you can compare the effects of market volatilities on Astor Long/short and Aew Real 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 Aew Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Aew Real.
Diversification Opportunities for Astor Long/short and Aew Real
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astor and Aew is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Aew Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aew Real Estate 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 Aew Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aew Real Estate has no effect on the direction of Astor Long/short i.e., Astor Long/short and Aew Real go up and down completely randomly.
Pair Corralation between Astor Long/short and Aew Real
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.48 times more return on investment than Aew Real. However, Astor Longshort Fund is 2.1 times less risky than Aew Real. It trades about 0.46 of its potential returns per unit of risk. Aew Real Estate is currently generating about 0.22 per unit of risk. If you would invest 1,381 in Astor Longshort Fund on September 2, 2024 and sell it today you would earn a total of 50.00 from holding Astor Longshort Fund or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Aew Real Estate
Performance |
| Timeline |
| Astor Long/short |
| Aew Real Estate |
Astor Long/short and Aew Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Aew Real
The main advantage of trading using opposite Astor Long/short and Aew Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Aew Real 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 Aew Real will offset losses from the drop in Aew Real's long position.| Astor Long/short vs. Fidelity Series Government | Astor Long/short vs. Government Securities Fund | Astor Long/short vs. Dws Government Money | Astor Long/short vs. Dreyfus Government Cash |
| Aew Real vs. Dunham High Yield | Aew Real vs. Gmo High Yield | Aew Real vs. Valic Company I | Aew Real vs. Legg Mason Partners |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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