Correlation Between Astor Longshort and Nuveen Winslow
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Nuveen Winslow 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 Longshort and Nuveen Winslow 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 Nuveen Winslow Large Cap, you can compare the effects of market volatilities on Astor Longshort and Nuveen Winslow 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 Longshort with a short position of Nuveen Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Nuveen Winslow.
Diversification Opportunities for Astor Longshort and Nuveen Winslow
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Nuveen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Nuveen Winslow Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Winslow Large and Astor Longshort 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 Nuveen Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Winslow Large has no effect on the direction of Astor Longshort i.e., Astor Longshort and Nuveen Winslow go up and down completely randomly.
Pair Corralation between Astor Longshort and Nuveen Winslow
Assuming the 90 days horizon Astor Longshort is expected to generate 2.76 times less return on investment than Nuveen Winslow. But when comparing it to its historical volatility, Astor Longshort Fund is 3.08 times less risky than Nuveen Winslow. It trades about 0.09 of its potential returns per unit of risk. Nuveen Winslow Large Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6,956 in Nuveen Winslow Large Cap on September 12, 2024 and sell it today you would earn a total of 96.00 from holding Nuveen Winslow Large Cap or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Astor Longshort Fund vs. Nuveen Winslow Large Cap
Performance |
| Timeline |
| Astor Longshort |
| Nuveen Winslow Large |
Astor Longshort and Nuveen Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Nuveen Winslow
The main advantage of trading using opposite Astor Longshort and Nuveen Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Nuveen Winslow 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 Nuveen Winslow will offset losses from the drop in Nuveen Winslow's long position.| Astor Longshort vs. SCOR PK | Astor Longshort vs. Morningstar Unconstrained Allocation | Astor Longshort vs. Via Renewables | Astor Longshort vs. Bondbloxx ETF Trust |
| Nuveen Winslow vs. American Funds The | Nuveen Winslow vs. American Funds The | Nuveen Winslow vs. Growth Fund Of | Nuveen Winslow vs. Growth Fund Of |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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