Correlation Between Astor Long/short and Guggenheim Long
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Guggenheim Long 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 Guggenheim Long 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 Guggenheim Long Short, you can compare the effects of market volatilities on Astor Long/short and Guggenheim Long 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 Guggenheim Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Guggenheim Long.
Diversification Opportunities for Astor Long/short and Guggenheim Long
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astor and GUGGENHEIM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Guggenheim Long Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Long Short 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 Guggenheim Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Long Short has no effect on the direction of Astor Long/short i.e., Astor Long/short and Guggenheim Long go up and down completely randomly.
Pair Corralation between Astor Long/short and Guggenheim Long
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.59 times more return on investment than Guggenheim Long. However, Astor Longshort Fund is 1.69 times less risky than Guggenheim Long. It trades about 0.13 of its potential returns per unit of risk. Guggenheim Long Short is currently generating about 0.07 per unit of risk. If you would invest 1,151 in Astor Longshort Fund on August 28, 2024 and sell it today you would earn a total of 272.00 from holding Astor Longshort Fund or generate 23.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Guggenheim Long Short
Performance |
| Timeline |
| Astor Long/short |
| Guggenheim Long Short |
Astor Long/short and Guggenheim Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Guggenheim Long
The main advantage of trading using opposite Astor Long/short and Guggenheim Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Guggenheim Long 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 Guggenheim Long will offset losses from the drop in Guggenheim Long's long position.| Astor Long/short vs. Pia High Yield | Astor Long/short vs. Pace High Yield | Astor Long/short vs. Prudential High Yield | Astor Long/short vs. Pimco High Yield |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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