Correlation Between Astor Longshort and Federated Ohio
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Federated Ohio 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 Federated Ohio 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 Federated Ohio Municipal, you can compare the effects of market volatilities on Astor Longshort and Federated Ohio 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 Federated Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Federated Ohio.
Diversification Opportunities for Astor Longshort and Federated Ohio
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astor and Federated is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Federated Ohio Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Ohio Municipal 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 Federated Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Ohio Municipal has no effect on the direction of Astor Longshort i.e., Astor Longshort and Federated Ohio go up and down completely randomly.
Pair Corralation between Astor Longshort and Federated Ohio
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 1.98 times more return on investment than Federated Ohio. However, Astor Longshort is 1.98 times more volatile than Federated Ohio Municipal. It trades about 0.14 of its potential returns per unit of risk. Federated Ohio Municipal is currently generating about 0.08 per unit of risk. If you would invest 1,251 in Astor Longshort Fund on September 12, 2024 and sell it today you would earn a total of 176.00 from holding Astor Longshort Fund or generate 14.07% 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. Federated Ohio Municipal
Performance |
| Timeline |
| Astor Longshort |
| Federated Ohio Municipal |
Astor Longshort and Federated Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Federated Ohio
The main advantage of trading using opposite Astor Longshort and Federated Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Federated Ohio 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 Federated Ohio will offset losses from the drop in Federated Ohio'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 |
| Federated Ohio vs. Hennessy Technology Fund | Federated Ohio vs. Blackrock Science Technology | Federated Ohio vs. Mfs Technology Fund | Federated Ohio vs. Allianzgi Technology Fund |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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