Correlation Between Astor Long/short and California Bond
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and California Bond 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 California Bond 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 California Bond Fund, you can compare the effects of market volatilities on Astor Long/short and California Bond 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 California Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and California Bond.
Diversification Opportunities for Astor Long/short and California Bond
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astor and California is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and California Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California Bond 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 California Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California Bond has no effect on the direction of Astor Long/short i.e., Astor Long/short and California Bond go up and down completely randomly.
Pair Corralation between Astor Long/short and California Bond
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 1.28 times more return on investment than California Bond. However, Astor Long/short is 1.28 times more volatile than California Bond Fund. It trades about 0.27 of its potential returns per unit of risk. California Bond Fund is currently generating about 0.2 per unit of risk. If you would invest 1,392 in Astor Longshort Fund on August 29, 2024 and sell it today you would earn a total of 35.00 from holding Astor Longshort Fund or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Astor Longshort Fund vs. California Bond Fund
Performance |
| Timeline |
| Astor Long/short |
| California Bond |
Astor Long/short and California Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and California Bond
The main advantage of trading using opposite Astor Long/short and California Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, California Bond 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 California Bond will offset losses from the drop in California Bond's long position.| Astor Long/short vs. Ambrus Core Bond | Astor Long/short vs. Ms Global Fixed | Astor Long/short vs. T Rowe Price | Astor Long/short vs. Multisector Bond Sma |
| California Bond vs. Tax Exempt Fund Of | California Bond vs. HUMANA INC | California Bond vs. Aquagold International | California Bond vs. Barloworld Ltd ADR |
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 Stocks Directory module to find actively traded stocks across global markets.
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