Correlation Between Astor Long/short and Pacific Funds
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Pacific Funds 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 Pacific Funds 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 Pacific Funds Esg, you can compare the effects of market volatilities on Astor Long/short and Pacific Funds 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 Pacific Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Pacific Funds.
Diversification Opportunities for Astor Long/short and Pacific Funds
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astor and Pacific is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Pacific Funds Esg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Funds Esg 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 Pacific Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Funds Esg has no effect on the direction of Astor Long/short i.e., Astor Long/short and Pacific Funds go up and down completely randomly.
Pair Corralation between Astor Long/short and Pacific Funds
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.97 times more return on investment than Pacific Funds. However, Astor Longshort Fund is 1.04 times less risky than Pacific Funds. It trades about 0.11 of its potential returns per unit of risk. Pacific Funds Esg is currently generating about 0.04 per unit of risk. If you would invest 1,188 in Astor Longshort Fund on September 4, 2024 and sell it today you would earn a total of 243.00 from holding Astor Longshort Fund or generate 20.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Astor Longshort Fund vs. Pacific Funds Esg
Performance |
| Timeline |
| Astor Long/short |
| Pacific Funds Esg |
Astor Long/short and Pacific Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Pacific Funds
The main advantage of trading using opposite Astor Long/short and Pacific Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Pacific Funds 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 Pacific Funds will offset losses from the drop in Pacific Funds' long position.| Astor Long/short vs. Virtus Seix Government | Astor Long/short vs. Dunham Porategovernment Bond | Astor Long/short vs. Dreyfus Government Cash | Astor Long/short vs. Dws Government Money |
| Pacific Funds vs. Aristotle Funds Series | Pacific Funds vs. Aristotle Funds Series | Pacific Funds vs. Aristotle International Eq | Pacific Funds vs. Aristotle Funds Series |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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