Correlation Between Astor Long/short and Vanguard Money
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Vanguard Money 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 Vanguard Money 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 Vanguard Money Market, you can compare the effects of market volatilities on Astor Long/short and Vanguard Money 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 Vanguard Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Vanguard Money.
Diversification Opportunities for Astor Long/short and Vanguard Money
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astor and Vanguard is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Vanguard Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Money Market 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 Vanguard Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Money Market has no effect on the direction of Astor Long/short i.e., Astor Long/short and Vanguard Money go up and down completely randomly.
Pair Corralation between Astor Long/short and Vanguard Money
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 3.2 times more return on investment than Vanguard Money. However, Astor Long/short is 3.2 times more volatile than Vanguard Money Market. It trades about 0.16 of its potential returns per unit of risk. Vanguard Money Market is currently generating about 0.13 per unit of risk. If you would invest 1,320 in Astor Longshort Fund on September 5, 2024 and sell it today you would earn a total of 110.00 from holding Astor Longshort Fund or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Astor Longshort Fund vs. Vanguard Money Market
Performance |
| Timeline |
| Astor Long/short |
| Vanguard Money Market |
Astor Long/short and Vanguard Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Vanguard Money
The main advantage of trading using opposite Astor Long/short and Vanguard Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Vanguard Money 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 Vanguard Money will offset losses from the drop in Vanguard Money's long position.| Astor Long/short vs. Ab Government Exchange | Astor Long/short vs. Edward Jones Money | Astor Long/short vs. Hsbc Treasury Money | Astor Long/short vs. American Century Municipal |
| Vanguard Money vs. Maryland Short Term Tax Free | Vanguard Money vs. Astor Longshort Fund | Vanguard Money vs. Calvert Short Duration | Vanguard Money vs. Siit Ultra Short |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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