Correlation Between Astor Long/short and Ultra-short Fixed
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Ultra-short Fixed 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 Fixed 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 Fixed Income, you can compare the effects of market volatilities on Astor Long/short and Ultra-short Fixed 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 Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Ultra-short Fixed.
Diversification Opportunities for Astor Long/short and Ultra-short Fixed
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astor and Ultra-short is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Ultra Short Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Short Fixed 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 Fixed. 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 Fixed has no effect on the direction of Astor Long/short i.e., Astor Long/short and Ultra-short Fixed go up and down completely randomly.
Pair Corralation between Astor Long/short and Ultra-short Fixed
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 5.08 times more return on investment than Ultra-short Fixed. However, Astor Long/short is 5.08 times more volatile than Ultra Short Fixed Income. It trades about 0.05 of its potential returns per unit of risk. Ultra Short Fixed Income is currently generating about 0.25 per unit of risk. If you would invest 1,117 in Astor Longshort Fund on December 5, 2024 and sell it today you would earn a total of 145.00 from holding Astor Longshort Fund or generate 12.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Ultra Short Fixed Income
Performance |
| Timeline |
| Astor Long/short |
| Ultra Short Fixed |
Astor Long/short and Ultra-short Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Ultra-short Fixed
The main advantage of trading using opposite Astor Long/short and Ultra-short Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Ultra-short Fixed 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 Fixed will offset losses from the drop in Ultra-short Fixed's long position.| Astor Long/short vs. Lord Abbett Intermediate | ||
| Astor Long/short vs. Prudential California Muni | ||
| Astor Long/short vs. Us Government Securities | ||
| Astor Long/short vs. Alpine Ultra Short |
| Ultra-short Fixed vs. T Rowe Price | ||
| Ultra-short Fixed vs. Hsbc Funds | ||
| Ultra-short Fixed vs. Voya Government Money | ||
| Ultra-short Fixed vs. Jpmorgan Trust I |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |