Correlation Between Astor Long/short and Blackrock Health
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Blackrock Health 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 Blackrock Health 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 Blackrock Health Sciences, you can compare the effects of market volatilities on Astor Long/short and Blackrock Health 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 Blackrock Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Blackrock Health.
Diversification Opportunities for Astor Long/short and Blackrock Health
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astor and Blackrock is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Blackrock Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Health Sciences 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 Blackrock Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Health Sciences has no effect on the direction of Astor Long/short i.e., Astor Long/short and Blackrock Health go up and down completely randomly.
Pair Corralation between Astor Long/short and Blackrock Health
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.48 times more return on investment than Blackrock Health. However, Astor Longshort Fund is 2.08 times less risky than Blackrock Health. It trades about 0.23 of its potential returns per unit of risk. Blackrock Health Sciences is currently generating about -0.09 per unit of risk. If you would invest 1,256 in Astor Longshort Fund on September 3, 2024 and sell it today you would earn a total of 65.00 from holding Astor Longshort Fund or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Blackrock Health Sciences
Performance |
| Timeline |
| Astor Long/short |
| Blackrock Health Sciences |
Astor Long/short and Blackrock Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Blackrock Health
The main advantage of trading using opposite Astor Long/short and Blackrock Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Blackrock Health 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 Blackrock Health will offset losses from the drop in Blackrock Health's long position.| Astor Long/short vs. Blackrock Health Sciences | Astor Long/short vs. Allianzgi Health Sciences | Astor Long/short vs. Eventide Healthcare Life | Astor Long/short vs. Alger Health Sciences |
| Blackrock Health vs. Vanguard Health Care | Blackrock Health vs. Vanguard Health Care | Blackrock Health vs. T Rowe Price | Blackrock Health vs. T Rowe Price |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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