Correlation Between Astor Longshort and Virtus Seix
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Virtus Seix 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 Virtus Seix 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 Virtus Seix Government, you can compare the effects of market volatilities on Astor Longshort and Virtus Seix 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 Virtus Seix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Virtus Seix.
Diversification Opportunities for Astor Longshort and Virtus Seix
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astor and Virtus is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Virtus Seix Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Seix Government 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 Virtus Seix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Seix Government has no effect on the direction of Astor Longshort i.e., Astor Longshort and Virtus Seix go up and down completely randomly.
Pair Corralation between Astor Longshort and Virtus Seix
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 3.86 times more return on investment than Virtus Seix. However, Astor Longshort is 3.86 times more volatile than Virtus Seix Government. It trades about 0.14 of its potential returns per unit of risk. Virtus Seix Government is currently generating about 0.23 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Virtus Seix Government
Performance |
| Timeline |
| Astor Longshort |
| Virtus Seix Government |
Astor Longshort and Virtus Seix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Virtus Seix
The main advantage of trading using opposite Astor Longshort and Virtus Seix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Virtus Seix 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 Virtus Seix will offset losses from the drop in Virtus Seix'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 |
| Virtus Seix vs. SCOR PK | Virtus Seix vs. Morningstar Unconstrained Allocation | Virtus Seix vs. Via Renewables | Virtus Seix vs. Bondbloxx ETF Trust |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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