Correlation Between Astor Long/short and Ultra-short Term
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Ultra-short Term 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 Ultra-short Term 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 Ultra Short Term Fixed, you can compare the effects of market volatilities on Astor Long/short and Ultra-short Term 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 Ultra-short Term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Ultra-short Term.
Diversification Opportunities for Astor Long/short and Ultra-short Term
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Ultra-short is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Ultra Short Term Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Short Term 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 Ultra-short Term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Short Term has no effect on the direction of Astor Long/short i.e., Astor Long/short and Ultra-short Term go up and down completely randomly.
Pair Corralation between Astor Long/short and Ultra-short Term
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 6.64 times more return on investment than Ultra-short Term. However, Astor Long/short is 6.64 times more volatile than Ultra Short Term Fixed. It trades about 0.1 of its potential returns per unit of risk. Ultra Short Term Fixed is currently generating about 0.44 per unit of risk. If you would invest 1,187 in Astor Longshort Fund on August 26, 2024 and sell it today you would earn a total of 231.00 from holding Astor Longshort Fund or generate 19.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Ultra Short Term Fixed
Performance |
| Timeline |
| Astor Long/short |
| Ultra Short Term |
Astor Long/short and Ultra-short Term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Ultra-short Term
The main advantage of trading using opposite Astor Long/short and Ultra-short Term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Ultra-short Term 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 Ultra-short Term will offset losses from the drop in Ultra-short Term's long position.| Astor Long/short vs. T Rowe Price | Astor Long/short vs. Tfa Alphagen Growth | Astor Long/short vs. Ab Centrated Growth | Astor Long/short vs. Chase Growth Fund |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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