Correlation Between Astor Longshort and Voya Morgan
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Voya Morgan 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 Voya Morgan 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 Voya Morgan Stanley, you can compare the effects of market volatilities on Astor Longshort and Voya Morgan 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 Voya Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Voya Morgan.
Diversification Opportunities for Astor Longshort and Voya Morgan
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Astor and Voya is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Voya Morgan Stanley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Morgan Stanley 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 Voya Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Morgan Stanley has no effect on the direction of Astor Longshort i.e., Astor Longshort and Voya Morgan go up and down completely randomly.
Pair Corralation between Astor Longshort and Voya Morgan
Assuming the 90 days horizon Astor Longshort is expected to generate 1.29 times less return on investment than Voya Morgan. But when comparing it to its historical volatility, Astor Longshort Fund is 2.02 times less risky than Voya Morgan. It trades about 0.13 of its potential returns per unit of risk. Voya Morgan Stanley is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,217 in Voya Morgan Stanley on September 12, 2024 and sell it today you would earn a total of 382.00 from holding Voya Morgan Stanley or generate 31.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Voya Morgan Stanley
Performance |
| Timeline |
| Astor Longshort |
| Voya Morgan Stanley |
Astor Longshort and Voya Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Voya Morgan
The main advantage of trading using opposite Astor Longshort and Voya Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Voya Morgan 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 Voya Morgan will offset losses from the drop in Voya Morgan'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 |
| Voya Morgan vs. Delaware Investments Ultrashort | Voya Morgan vs. Astor Longshort Fund | Voya Morgan vs. Virtus Multi Sector Short | Voya Morgan vs. Aqr Long Short Equity |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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