Correlation Between Astor Longshort and Easterly Snow
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Easterly Snow 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 Easterly Snow 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 Easterly Snow Longshort, you can compare the effects of market volatilities on Astor Longshort and Easterly Snow 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 Easterly Snow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Easterly Snow.
Diversification Opportunities for Astor Longshort and Easterly Snow
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Astor and Easterly is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Easterly Snow Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easterly Snow Longshort 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 Easterly Snow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easterly Snow Longshort has no effect on the direction of Astor Longshort i.e., Astor Longshort and Easterly Snow go up and down completely randomly.
Pair Corralation between Astor Longshort and Easterly Snow
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.25 times more return on investment than Easterly Snow. However, Astor Longshort Fund is 4.01 times less risky than Easterly Snow. It trades about 0.09 of its potential returns per unit of risk. Easterly Snow Longshort is currently generating about -0.21 per unit of risk. If you would invest 1,416 in Astor Longshort Fund on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Astor Longshort Fund or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Astor Longshort Fund vs. Easterly Snow Longshort
Performance |
| Timeline |
| Astor Longshort |
| Easterly Snow Longshort |
Astor Longshort and Easterly Snow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Easterly Snow
The main advantage of trading using opposite Astor Longshort and Easterly Snow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Easterly Snow 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 Easterly Snow will offset losses from the drop in Easterly Snow'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 |
| Easterly Snow vs. SCOR PK | Easterly Snow vs. Morningstar Unconstrained Allocation | Easterly Snow vs. Thrivent High Yield | Easterly Snow vs. Via Renewables |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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