Correlation Between Astor Long/short and Pfg Invesco
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Pfg Invesco 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 Pfg Invesco 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 Pfg Invesco Thematic, you can compare the effects of market volatilities on Astor Long/short and Pfg Invesco 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 Pfg Invesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Pfg Invesco.
Diversification Opportunities for Astor Long/short and Pfg Invesco
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Pfg is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Pfg Invesco Thematic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfg Invesco Thematic 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 Pfg Invesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfg Invesco Thematic has no effect on the direction of Astor Long/short i.e., Astor Long/short and Pfg Invesco go up and down completely randomly.
Pair Corralation between Astor Long/short and Pfg Invesco
Assuming the 90 days horizon Astor Long/short is expected to generate 1.08 times less return on investment than Pfg Invesco. But when comparing it to its historical volatility, Astor Longshort Fund is 1.58 times less risky than Pfg Invesco. It trades about 0.24 of its potential returns per unit of risk. Pfg Invesco Thematic is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 921.00 in Pfg Invesco Thematic on August 28, 2024 and sell it today you would earn a total of 22.00 from holding Pfg Invesco Thematic or generate 2.39% 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. Pfg Invesco Thematic
Performance |
| Timeline |
| Astor Long/short |
| Pfg Invesco Thematic |
Astor Long/short and Pfg Invesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Pfg Invesco
The main advantage of trading using opposite Astor Long/short and Pfg Invesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Pfg Invesco 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 Pfg Invesco will offset losses from the drop in Pfg Invesco's long position.| Astor Long/short vs. Rbc Short Duration | Astor Long/short vs. Angel Oak Ultrashort | Astor Long/short vs. Quantitative Longshort Equity | Astor Long/short vs. Old Westbury Short Term |
| Pfg Invesco vs. Riskproreg Pfg 0 15 | Pfg Invesco vs. Pfg American Funds | Pfg Invesco vs. Pfg Br Equity | Pfg Invesco vs. Riskproreg Dynamic 0 10 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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