Correlation Between Astor Longshort and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Tiaa Cref 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 Tiaa Cref 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 Tiaa Cref Large Cap Value, you can compare the effects of market volatilities on Astor Longshort and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Tiaa Cref.
Diversification Opportunities for Astor Longshort and Tiaa Cref
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Astor and Tiaa is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Tiaa Cref Large Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Large 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Large has no effect on the direction of Astor Longshort i.e., Astor Longshort and Tiaa Cref go up and down completely randomly.
Pair Corralation between Astor Longshort and Tiaa Cref
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.25 times more return on investment than Tiaa Cref. However, Astor Longshort Fund is 3.95 times less risky than Tiaa Cref. It trades about 0.13 of its potential returns per unit of risk. Tiaa Cref Large Cap Value is currently generating about -0.2 per unit of risk. If you would invest 1,413 in Astor Longshort Fund on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Astor Longshort Fund or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Tiaa Cref Large Cap Value
Performance |
| Timeline |
| Astor Longshort |
| Tiaa Cref Large |
Astor Longshort and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Tiaa Cref
The main advantage of trading using opposite Astor Longshort and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Longshort Fund |
| Tiaa Cref vs. Touchstone Ultra Short | Tiaa Cref vs. Quantitative Longshort Equity | Tiaa Cref vs. Aqr Long Short Equity | Tiaa Cref vs. Astor Longshort Fund |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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